WRAPUP 3-Brazil's beleaguered currency rebounds after intervention threat

jueves 24 de septiembre de 2015 23:36 GYT

* Tombini does not rule out using reserves to boost currency

* Real rebounds, ends day below 4 per dollar

* Unemployment rate rose in August to 5-year high

By Alonso Soto and Walter Brandimarte

BRASILIA/SAO PAULO, Sept 24 (Reuters) - Brazil's currency rebounded strongly after the central bank vowed to defend it with every weapon it had, lifting the real off all times lows struck earlier on Thursday as investors fretted over the outlook for Latin America's largest economy.

A growing political crisis that threatens to unseat President Dilma Rousseff and a deepening economic recession have dragged the Brazilian real to its weakest level since the currency was created in 1994.

The real plumbed a new low of 4.248 to the U.S. dollar before bouncing back to end the day at 3.99 after central bank president Alexandre Tombini warned he was ready to use Brazil's $371 billion foreign reserves to calm the foreign exchange market if needed.

"In this process, all instruments are available for the central bank," Tombini told an unscheduled press briefing. "Foreign reserves are an insurance that could and should be used."

The currency rallied further, bringing its gains for the day to 3.0 percent, after the Treasury announced a program of daily debt auctions to provide liquidity to the local debt market.   Continuación...