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By Guillermo Parra-Bernal

SAO PAULO, July 8 (Reuters) - Brazilian stock prices fell on Wednesday for the fifth straight session and the currency weakened as traders pointed to unease in world equities markets over forecasts pointing to a dour global economy this year.

The benchmark Bovespa index .BVSP fell for a fifth consecutive session in volatile trading, shedding 0.56 percent to close at 49,177.55 points, ahead of Thursday's market holiday in Sao Paulo, Brazil's largest industrial and financial hub.

The index had fallen more than 1.5 percent, but trimmed its losses after Wall Street stocks turned higher in late trading.

Brazil's currency, the real (BRBY: Quote, Profile, Research), weakened through the two-per-dollar mark for the first time since June 23, easing 0.9 percent to 2.011 reais per greenback.

"The generous inflow of funds over the past two months has diminished and the exchange rate has reversed," said Sidnei Nehme, executive director at NGO Brokerage.

In an update of its World Economic Outlook, the IMF said Wednesday that the global economy is likely to contract 1.4 percent this year, a touch steeper than the 1.3 percent decline it expected in April.

Investors remain skittish over the outlook for U.S. corporate earnings. Alcoa Inc (AA.N: Quote, Profile, Research), the first Dow Jones component company to report earnings, after the market close posted its third consecutive quarterly loss but beat Wall Street estimates.