Brazil stocks ended higher on Friday as investors took a breather after a series of losses inspired by local political woes and high oil prices. Brazil's currency, the real, gained 0.75 percent to 2.381 per dollar after weakening during the past two days. The Bovespa index of the Sao Paulo Stock Exchange finished 0.41 percent higher at 24,916.9 points after sinking 4.9 percent in four straight sessions of losses.
Dollars coming from exports and, more recently, from companies issuing debt abroad are helping the real to firm, currency traders said.
They added that political turbulence abated slightly on Friday because investors have yet to see any conclusions from a parliamentary probe of allegations of government corruption.
Such accusations emerged three weeks ago when a government coalition partner accused the ruling Workers' Party, or PT, of bribing congressmen in exchange for support of its policies.
"After all those allegations, things remain the same and we see banks and companies issuing (debt) abroad," said Mario Battistel, director of currency trading at Novacao brokerage.
Stocks also benefited from the calmer political situation, but high oil prices curbed gains, traders said. In New York, August crude oil closed at $59.84.
"We can say that, if the political scenario and oil prices were not weighting on the market, the Bovespa index would be around 26,500 points," said Andre Querne, a fund manager at Maxima Asset Management in Rio de Janeiro.
He said the local economic scenario has improved. The latest inflation data suggests the central bank may ease its monetary policy in the next months, he added.
Shares of oil firm Petrobras fell 1.56 percent to 106.50 reais with the highest turnover on the exchange.
Some traders said investors fear state-owned Petroleo Brasileiro SA will not raise its prices as much as oil prices abroad, putting pressure on earnings. Others said investors were just pocketing some gains in the stock, which has outperformed the market in recent sessions.
Shares of bellwether Tele Norte Leste Participacoes, or Telemar, closed a modest 0.13 percent higher at 39 reais.