NEW YORK (CNN/Money) - Stocks in Brazil fell another 4 percent in early trading Friday and the country's currency dropped past a five-month low as the markets continue to feel the fallout of an alleged political bribing scandal.

At 9:40 a.m. ET, the Bovespa fell 4 percent to 20,196.36 following a 5 percent drop Thursday. The real currency dropped another 1.8 percent as investors weighed the implications that a high-ranking aide may have doled out political favors for money.

"The market is going to remain stressed until there's a significant response by the government," Eduardo Fornazier, a portfolio manager at Santos Asset Management in Sao Paulo, told Reuters. "This is a crisis at the heart of the government."

The Bovespa has slumped more than 12 percent since last Friday, when Waldomiro Diniz was fired after local media showed video footage of him soliciting funds from a bingo operation in return for favors from the ruling Workers' Party in 2002.

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Meanwhile, the real currency sank to trade at 3.012 per U.S. dollar. The last time the real traded at the 3-per-dollar mark was Sept. 2, 2003.