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By Ana Nicolaci da Costa

BRASILIA, May 7 (Reuters) - Brazil's stocks and currency fell sharply on Wednesday, tracking Wall Street losses while investors took a breather from the recent euphoria after the country landed an investment-grade credit rating.

The Sao Paulo Stock Exchange's benchmark Bovespa index .BVSP shed 1.68 percent to 69,017.66 points, after four consecutive sessions of gains.

Declines in shares of blue-chip miner Vale and petrochemical giant Braskem weighed on the market, while steel company CSN rose.

Brazil chose to take advantage of the country's upgrade by launching an additional $500 million in global bonds due 2017 <BRAGLB17=RR> on Wednesday. Treasury Secretary Arno Augustin also said Brazil has plans to sell its first ever 30-year bond denominated in local currency.

The real BRBY, meanwhile, slumped nearly 1.8 percent against the dollar, with the latter buoyed by a surprise advance in U.S. productivity data and comments from a Federal Reserve official that the U.S. central bank must stand ready to raise interest rates to combat inflation.

Brazil's currency surged last week after Standard & Poor's upgraded the country by a notch to "BBB-". While some say a likely influx of dollars may further strengthen the real and hurt exporters, the rally seems to have fizzled for now.

"We have a strong unwinding of carry trade positions and a return to dollar assets," said Marcelo Voss, chief economist at Liquidez.