Brazilian equities markets and its currency both saw losses on Friday as
investors engaged in profit-taking and as they braced for the possibility of more revelations in the country’s current political scandal. The real lost 0.96 percent to 2.422 to the US dollar, after a 1.68 percent gain on Thursday.

Meanwhile, the Bovespa index in Sao Paulo was down 0.52 percent to 27,258 on the heels of a 2.58 percent gain on Thursday. Almost all stocks fell on Friday, with mobile phone company TIM Participacoes falling an especially steep 3.91 percent to 4.42 reais. One of the few exceptions was Telemar, which gained 0.28 percent to 35.60 reais.

Thursday’s gains came after the ex-aide who had accused Brazilian Finance Minister Antonio Palocci of accepting bribes when he was a mayor said that he had no proof of his accusations. Investors had been worried that if proof of wrongdoing on the finance minister’s part has been produced,
Mr. Palocci might have been forced to resign, bringing on a period of
uncertainty concerning economic policy.

But some analysts were not convinced that Mr. Palocci is completely in the clear, and urged caution until it is seen whether the weekend brought any new revelations or proof of the ex-aide’s allegations.