Brazilian real's new low brings year-to-date loss to almost 8pc

Another day, another record low for the Brazilian real against the dollar.

Brazil's currency fell below 4.35 reais per dollar for the first time on Wednesday, as weaker-than-expected retail sales figures earlier in the day gave renewed impetus to the selling that has picked up notable momentum in recent days.

The latest slide marked the fourth day in a row the real has made a new low against the dollar and brought its losses since Jan. 1 to almost 8%, making it one of the worst-performing currencies in the world against the greenback.

Figures on Wednesday showed that Brazilian retail sales unexpectedly fell in December, the first decline in eight months and another sign that the wider economic recovery may be weaker than many had hoped. "The (retail sales data) release extends the slew of disappointing data undermining the growth narrative in Brazil and BRL longs," Citi's emerging market strategy team led by Dirk Willer wrote in a client note on Wednesday.

"We stay on the sidelines in the BRL until more positive data firmly close to door to further (policy) easing." Brazil's central bank last week cut its benchmark Selic rate to a new low of 4.25% and signaled that its easing cycle was now over. But any support the real might have got from the unwinding of further easing bets in rates markets has not materialized.