The Brazilian and Mexican currencies weakened and stocks across Latin America fell on Friday as a global emerging-market selloff drove many investors to unwind bets on stronger currencies despite increased central bank intervention. The real fell as much as 2 percent against the dollar to the weakest since March 2016, before recovering slightly to close 1 percent lower.
The currency weakened for a sixth straight day, capping an 11.3 percent decline since the beginning of the year that made it the second-worst performing currency in Latin America, behind only the Argentine peso. Mexico's peso also fell more than 1 percent against the dollar as leaders in the United States and Mexico threw cold water on the prospect of a quick renegotiation of the North American Free Trade Agreement (NAFTA).