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 said his government will “look for an equilibrium” in the exchange rate.
The real fell 1.43 percent to 3.1850 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 country’s 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 was stable, closing at 58,298.41 points. (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by W Simon and Leslie Adler)