Freefalling Brazilian Real Has SocGen Counting 11% Trade Profit

Having calculated an 11 percent profit shorting Brazil’s real, Societe Generale AG now predicts the world’s worst-performing major currency of the year will slide past 4 per dollar for the first time since 2002.

The real “is arguably the most vulnerable emerging-market currency at this point, facing rapidly worsening fundamentals on top of a fragile external backdrop,” Bernd Berg, a London-based strategist at Societe Generale, wrote in a report on Wednesday. “With the deterioration of the fiscal situation, further rating downgrades now seem unavoidable.”