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NEW YORK (TheStreet) -- Itau Unibanco Holding (ITUB) - Get Itaú Unibanco Holding SA Reportstock is falling 0.41% to $7.33 in late-morning trading Friday as the Brazilian real plunges.

The Brazilian real is falling after the arrest of a ruling-party senator, Delcidio Amaral, this week, Bloomberg reports. 

The currency has declined 0.7% this week to 3.7328 per dollar as of 12:20 p.m. in Sao Paolo, according to Bloomberg.

Amaral's arrest has delayed the vote on a new budget target, according to Bloomberg.

"What we have now is this hangover after all these arrests, which caused a paralysis in Congress and worsened the political imbroglio," Camila Abdelmalack, an economist at CMCapitalMarkets, told Bloomberg. "Not a single step has been taken to consolidate the budget amid deepening political frictions, and there is this feeling that this mess is far from over, which increases aversion toward Brazilian assets."

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Based in Sao Paolo, Itau Unibanco offers a variety of financial services to corporate and individual clients.

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