Reuters reported that Brazil's currency lost more than 2% against the US dollar on November 23rd 2011, leading declines in Latin American currencies, on concern a slowing Chinese economy will slash demand and prices for the country's iron ore, soybeans other commodity exports.

The Real has lost nearly 8% in November, the third biggest loss among the 36 most traded currencies against the dollar.

Mr Luciano Rostagno chief strategist with the Sao Paulo unit of West LB said that "The real is suffering because China is our biggest trading partner. The data is showing a major contraction in China, which means that in addition to export volumes, prices are falling, too."

Other Latin American currencies strongly linked to commodities also weakened.

Chile's peso shed 0.98% to 523.30, its weakest in nearly seven weeks. Chile, the world's largest producer of copper, gets about 55% of its export earnings from the reddish metal, a key component in electrical and electronic goods.

Colombia's peso weakened 0.52% to 1,927.95, testing its weakest levels in more than six weeks. Colombia is a major producer of oil and coal and a leading producer of coffee.

Latin American currencies also weakened on concern Europe, a regional economy that when considered together is larger than China's, is also slowing and is likely to enter a recession soon.

The region's debt crisis also widened as concern grew that France will have to come up with new cash to bail out the Franco Belgian bank Dexia and weak market demand for German bonds raised concern Europe's largest and most solid economy may have trouble selling debt.

(Sourced from www.reuters.com)