By Adriana Brasileiro
Sept. 26 (Bloomberg) -- Brazil's real fell as negotiations on the $700 billion financial rescue plan reached a standstill in Washington, increasing aversion to higher-yielding emerging- market assets.
The real weakened 1.8 percent to 1.8525 per dollar at 9:53 a.m. New York time, from 1.8206 yesterday. Today's slide extends the real's loss this week to 1.3 percent. Brazil's currency has lost 11.9 percent this month and is the worst performer among the 16 most-actively traded currencies tracked by Bloomberg.
``Today is a day of low volume and high anxiety levels because of this snag in the U.S. financial package,'' said Paulo Fujisaki, a foreign-exchange strategist at Socopa Corretora in Sao Paulo. ``It's a good day for speculators; we won't really see trades based on fundamentals.''
Local stocks fell, with the Bovespa index slumping almost 3 percent.
The yield on Brazil's zero-coupon bond due in January 2010 fell 1 basis point, or 0.01 percentage point, to 14.79 percent.
The yield on Brazil's overnight futures contract for January 2010 delivery was little changed at 14.72 percent.
Brazilian pension funds have posted losses since the collapse of the U.S. subprime market. Previ, Latin America's biggest pension fund, lost 10 billion reais on its stock portfolio in the past year.
The equity portfolio of the pension funds of employees of Banco do Brasil SA, Brazil's largest state-owned bank, fell to 80 billion reais, the fund President Sergio Rosa told reporters in Rio de Janeiro today.
-- With reporting by Diana Kinch in Rio de Janeiro. Editors: Glenn J. Kalinoski, Michael Weiss
To contact the reporter on this story: Adriana Brasileiro in Rio de Janeiro at abrasileiro@bloomberg.net
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