BRASILIA: Brazil's real sank around 1.5% to a fresh four-month low through 5.78 per dollar on Monday after a Supreme Court judge annulled the criminal convictions against former leftist President Luiz Inacio Lula da Silva and restored his political rights.

The real traded as weak as 5.7851 per dollar, its weakest since Oct. 30 last year.

"If it is true, Lula is a candidate," said one trader at a bank in Sao Paulo, referring to next year's presidential elections.