Brazil Spends $17 Billion in Reserves to Lift Cratering Real
- Real pares weekly losses as central bank steps in repeatedly
- Assets add to gains after Lula comments in social media
Pedestrians walk past a currency exchange shop on Paulista Avenue in Sao Paulo, Brazil.
Photographer: Tuane Fernandes/BloombergThis article is for subscribers only.
Brazilian markets bounced at the end of the week amid extraordinary central bank moves to curb a selloff in the currency.
The real was among the best performers in emerging markets Friday after the central bank stepped in with a spot sale and credit line auction totaling a combined $7 billion. The currency further extended gains, climbing to a session high after a social media post from President Luiz Inacio Lula da Silva reaffirming the need to safeguard the nation’s fiscal rule.