BRASILIA: The Brazilian real slumped on Monday as mounting concerns over this year's presidential election added to global risk aversion, while the Argentine peso extended its recent sell-off.
Emerging market currencies in general have suffered in recent weeks due to escalating trade tensions surrounding the United States that investors believe could damage global growth.
US President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the talks to revamp NAFTA or he would terminate the trilateral pact altogether.
The real weakened 1.5 percent, nearing its weakest in 2-1/2 years, also weighed down by anxiety over October's presidential election.
"There's a lot of uncertainty, both concerning the trade war and the outcome of the elections. And liquidity is thin due to the US holiday," a trader at a S?o Paulo-based brokerage said, referring to the US Labor Day holiday.
Other Latin American assets were also down, with Mexico's and Chile's currencies slipping 0.5 and 0.6 percent, respectively.
But the Argentine peso led losses, deepening a recent rout driven by growing bets against President Mauricio Macri's ability to rein in a fiscal deficit and curb inflation.
The move came even after the government unveiled a new export tax and spending cuts aimed at fighting the currency crisis while it continues to negotiate additional funding with the International Monetary Fund (IMF).
The peso is down over 50 percent this year, making it one of the world's worst-performing currencies.
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