Brazil's currency hits record low on pessimism over budget

Sao Paulo

BRAZIL'S real fell to its lowest level since its introduction two decades ago on concern that President Dilma Rousseff won't be able to shore up the country's budget and avoid further credit-rating cuts.

The currency sank to as low as 4.0142 per US dollar, the weakest intraday level since its introduction in 1994. The real has tumbled 5.7 per cent since Standard & Poor's cut the nation to junk on Sept 9, and concern is mounting that the country may face further downgrades amid a political stalemate related to a probe into corruption at the state-controlled oil company.