The Brazilian real hit a historical low against the US dollar on Thursday closing at 4.195 reals per dollar, Xinhua reported.
The previous record low was set on Jan. 21, 2016 when the real closed at 4.163 against the dollar.
On Thursday, the US dollar grew 1.1 percent over the real amid increasing uncertainty over the upcoming elections as well as volatility in the exchange markets of emerging economies after Turkey announced an increase in its interest rate.
Analysts predicted the nervousness will continue until there is a clear picture of the Brazilian election outcome.
During Thursday's trading session, the real briefly hit 4.204 against the dollar, nearly reaching the record of 4.248 on Sept. 24, 2015.
For the year-to-date, the real has depreciated 26.61 percent. So far this month, the real has seen a devaluation of 3.02 percent against the dollar.
Thursday's devaluation came in spite of the offering and selling 10,900 exchange "swaps" by the Brazilian Central Bank.
On Monday, the financial market forecast that the real would close the year at 3.80 to the dollar.
Finance Minister Eduardo Guardia admitted Wednesday that for the moment, there was no measure the government could take to cope with the market volatility before the upcoming elections.