REFILE-EMERGING MARKETS-Brazil real falls on Temer concern over currency strength
(In 3rd paragraph, changes first word to "the") SAO PAULO, Aug 12 (Reuters) - The Brazilian real weakened further on Friday after interim President Michel Temer showed concern over currency strength, while stocks edged lower following a heavy batch of quarterly results including state-controlled oil company Petróleo Brasileiro SA. In an interview with newspaper Valor Econômico published on Friday, Temer said he was worried about the real's recent appreciation against the dollar and added his government will "look for an equilibrium" in the exchange rate. The real fell 1 percent to 3.17 per dollar following a 0.3 percent decline on Thursday, which snapped six straight sessions of gains that had taken the currency to a one-year high. The slide began when the central bank stepped up its market intervention selling $750 million in reverse currency swaps on Thursday and Friday, effectively purchasing dollars for future delivery from investors. The real's strength had worried some investors who fretted it could smother the nascent economic recovery by curtailing exports. Central bank chief Ilan Goldfajn said on Friday that the bank will cautiously use its tools when needed to intervene in the foreign exchange market, while sticking to a floating exchange rate. "Temer's comments added some noise to the market and should weigh on the real, at least until (dollar) inflows start to materialize," Intercam brokerage trader Glauber Romano said. The country's benchmark Bovespa stock index fell 0.2 percent, weighed down by shares of of CCR SA. The company, Brazil's largest road operator, posted a 20 percent drop in second-quarter net earnings. Shares in Petrobras rose despite lower second-quarter profits, as analysts praised strong recurring operational results and lower leverage. Lojas Americanas SA shares also gained, hitting a record high, after the retailer reported higher second-quarter profit margins. Key Latin American stock indexes and currencies at 1540 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 907.84 0.03 14.29 MSCI LatAm 2488.33 -0.98 37.34 Brazil Bovespa 58186.51 -0.19 34.23 Mexico IPC 48159.12 -0.38 12.06 Chile IPSA 4164.07 0.3 13.15 Chile IGPA 20576.99 0.35 13.36 Argentina MerVal 15396.61 0.54 31.87 Colombia IGBC 9724.58 -0.4 13.77 Venezuela IBC 12290.88 -0.88 -15.75 Currencies daily % YTD % change change Latest Brazil real 3.1719 -1.07 24.44 Mexico peso 18.2800 -0.25 -5.74 Chile peso 650.8 -1.23 9.05 Colombia peso 2923.55 -1.21 8.41 Peru sol 3.317 -0.39 2.92 Argentina peso (interbank) 14.6600 0.17 -11.44 Argentina peso (parallel) 15.26 0.26 -6.49 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by W Simon)
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