NEW YORK (TheStreet) -- Shares of Banco Bradesco (BBD) - Get Report closed down 7.24% to $8.71 in Friday's trading session after inflation data lowered the likelihood that the central bank will soon cut borrowing costs.
"The market believed that authorities everywhere would do almost anything to support activity, and that doesn't seem so true now," Hersz Ferman, an analyst at the brokerage Elite Corretora, told Bloomberg. "Assets are now adjusting to a tougher reality."
Additionally, the Federal Reserve appears more likely to raise interest rates as early as September, which could negatively impact emerging countries where investors have sought higher returns.
The Brazilian real declined earlier today by 1.7% to 3.271 per dollar, according to Bloomberg.