Brazilian Election Damages Currency

The fear of a victory of left in the Brazilian presidential election the next week reduced the currency and caused criticism that Wall Street exerts the abnormal influence on the interior policy.

The opinion polls in last days suggest that the Latin America 'country of the S largest elects its first president of left during more than 40 years. Luiz Inacio Lula da Silva of the Party of the Workers currently has the support of 41%, only some points short-circuit pure victory in the first round.

It is more than 20 points in front of its principal challenger.

But the former metal-worker the 'wire of S.A. sent of the shivers by the international markets. Since April the true one lost more than one third of its value, reaching a bottom Tuesday, equivalent to a devaluation of 41%.

March� is worried about what will occur under, about Lula Antonio Madeira, an political analyst with the MCA Consultores in Sao Paulo, said. March� will not give him the advantage of the doubt.

Lula, which was the second in the three preceding elections, made efforts convince of the investors who he would be a responsible president. In spite of its part 'rhetoric of anti-universalization of S, it gave up plans renationalisent industries and promised moderate economic policies.

The value of truth became an exit of crucial election, since she threatens to impose a nightshirt of economic force on the country, increasing her problems of maintenance of debt and pushed inflation.

Probl�me with having a currency of undulation is that this becomes a loudspeaker for any pressure, and it then itself becomes an instrument of, of pressure Fernando Cardim of the federal university of Rio de Janeiro said.

The Party of the Workers carried out the polls for the major part of the year, and went to the front of the support of the important businesses. The last weekend an influential tycoon of electronics invited voters to support Lula.

The singer of Andre, the part 'spokesperson of countryside of S, said that he believed that foreign exchange rate depended more on the international situation the election.

But one of his/her colleagues showed the economic central bank terrorism by making it possible truth to lose the value with the advantage the market 'the candidate preferred by S, Jose Serra.