The Brazilian real on Friday slipped against the world's reserve currency after the South American nation's efforts to stop capital outflows were ineffective, Bloomberg reports.
The downward dive of the monetary unit of the largest economy in Latin America surged as high as 0.5 percent on Friday. Though the real roughly breaks even this week against the greenback, its losses against its cross-Atlantic rival since late April are more than 6 percent.
In response to an article published by The Wall Street Journal stating the U.S. Federal Reserve is poised to confront preoccupations about interest rates climbing, the real kicked off the Friday trading session with gains.
"That's taken the edge off and helped stabilize markets," forex analyst Ilan Solot with Brown Brothers Harriman in London told The Wall Street Journal. "The line in the sand has been drawn there, and the markets understand the government has a lot more ammunition to take a strong stand."
The real's recent losses also were linked with credit rating agency Standard & Poor's recent reduction of Brazil's outlook rating to negative as concerns grow regarding the pace of growth, Bloomberg reports.
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