Brazil's Real Leads Losses in Latin America as Stocks Fluctuate
- Brazil's real posts widest swings among major currencies
- Banks extend 2015 plunge, while Petrobras joins rally in oil
Brazil's Economy Contracts 1.9% in Second Quarter
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Brazilian stocks led world declines and the real slumped after data showed Latin America’s largest economy entered a recession, adding to concern corporate earnings will falter.
The currency traded near a 12-year low, showing the widest swings among major tenders, and the Ibovespa was set for the worst month this year as the national statistics agency reported a back-to-back quarterly contraction in gross domestic product. The 1.9 percent economic slump in the three months through June 30 was the biggest in more than six years and trailed economists’ projections. Lenders including Banco Bradesco SA tumbled, while oil producer Petroleo Brasileiro SA surged with crude.