Brazilian markets are set to have their worst week in two years due to concerns over the country's budget following the announcement of a government spending cut plan.
The Brazilian real has experienced a significant decline, dropping as much as 1.6% on Friday and down nearly 5% for the week, making it the worst performer among developing nations.
An exchange-traded fund that tracks Brazilian equities fell by 4.6% in premarket trading in New York, compounding losses of 3.8% over the previous three sessions.
The ongoing volatility reflects investor anxiety about Brazil's fiscal health and the effectiveness of the newly proposed spending measures.