Brazilian financial markets fell Friday as a fresh election poll put a damper on investor optimism over the country's record loan deal with the International Monetary Fund.
Brazil's currency, stocks and bonds rallied sharply Thursday after the IMF announced it would lend the troubled country $30 billion, briefly putting a lid on market fears that a leftist may be elected president in October.
Those same fears, however, roiled markets again Friday after a local polling firm released a survey showing the market's top pick for president, government-backed candidate Jose Serra, falling further behind two left-leaning opponents.
There also was speculation that a separate poll due out Sunday would show Serra slipping into fourth place, an event that might prompt the former health minister to pull out of the race.
A spokesman for Serra dismissed the talk as "market rumors."
"The IMF deal was fantastic, but it would be naive to think that all of our problems have suddenly been solved," said Alexandre Vasarhelyi, head of foreign exchange at ING Barings.
Brazil's currency, the real, fell nearly 4% against the dollar, erasing Thursday's gains despite an attempt by the Central Bank to prop up the currency. The real has shed more than 23% of its value this year.
The nation's benchmark Bovespa index slid 3.2%, dragged down by heavy losses across the board. On Thursday, the Bovespa surged 4.5%, posting its biggest one-day percentage gain of the year.
Though the market remained enthusiastic about the IMF bailout, few expected the accord would be enough to fuel a long-term rally in Brazilian assets, analysts said.