Brazil Real Rises as Petrobras Board to Review Financial Results

Brazil Real Rises as Petrobras Board to Review Financial Results

10:01 AM BRT
April 14, 2015

Brazil’s real climbed for the first time in four days as state-controlled oil producer Petroleo Brasileiro SA indicated that it was moving closer to publishing financial results.

The currency added 0.6 percent to 3.1013 per dollar at 9:31 a.m. in Sao Paulo a day after falling the most in two weeks. One-month implied volatility on options for the real, reflecting projected shifts in the exchange rate, was the highest among 16 major currencies tracked by Bloomberg.

The real rallied Tuesday as Petrobras said it will present third-quarter and 2014 results at an April 22 board meeting and release them after approval. While Brazilians took to the streets Sunday to protest the corruption scandal at the state-controlled oil company as well as government austerity measures, the turnout was smaller than for demonstrations held last month.

 “News that Petrobras’s audited results may come out as early as April 22 takes the pressure off the real,” Joao Paulo de Gracia Correa, a currency trader at Correparti Corretora de Cambio in Curitiba, Brazil, said in a research note to clients.

The real has gained 3.4 percent this month, partly benefiting from an agreement by party leaders in Brazil’s ruling coalition to support the government’s plan to trim budget deficits.

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