The Brazilian real fell about 0.6% to hit its lowest level in nearly a year after data showed a current account deficit of $9 billion in July, far wider than the $5.9 billion shortfall forecast in a Reuters poll of economists. Brazil is also facing pressure from world leaders because of a record number of fires in the Amazon rainforest creating an environmental crisis.
European leaders have threatened to tear up a trade deal with South America. On Friday, China and the United States had threatened to slap tariffs on each other's goods and Trump told US companies to look for alternatives to their China operations, raising fears that the drawn-out trade war will tip the world into recession. Trump said on Monday that China had contacted US trade officials overnight to say it wanted to return to the negotiating table.