Brazil's financial markets have been rattled this week as investors began to hedge themselves against the potential fallout from a corruption scandal involving President Luiz Inácio Lula da Silva's Workers' Party.

The Worker's Party, or PT, is accused of having paid off congressmen for support. Its former treasurer admitted to having raised funds off the books through a publicist who had several government contracts and is suspected of having accepted unaccounted campaign contributions from private donors.