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SAO PAULO, Nov. 19 (Reuters) – The Brazilian real lost for the fifth consecutive session on Friday, when it closed above 5.61 per dollar and at a nearly three-week low, while the Benchmark Bovespa stock index cut a streak of four consecutive kills, but ended the week down 3%.

The real depreciated on the strength of the dollar abroad amid heated discussions over the possibility of anticipated monetary tightening in the United States.

At the local level, concerns persist about tax reform – which, if not approved, could lead to even less orthodox solutions on the part of the government to finance increased social spending – and the market still felt the impact of statements by the President of the Central Bank, Roberto Campos Neto, on inflation and economic activity in Brazil.

The real closed 0.73% lower at 5.6104 units per dollar, the lowest value since November 1 (5.6712 units per dollar).

In five consecutive sessions of decline, the longest streak since September, the Brazilian currency has lost 3.84%. Over the four working days of this week, the drop was 2.81%, the largest in a week since falling 3.11% in the week ending Oct. 22.

On the stock market, Bovespa closed higher, interrupting a series of four consecutive declines, in a session marked by the expiration of stock options.

The index was boosted by Vale and steel companies, following the advance of iron ore, and by telecommunications companies, after a favorable ruling for the sector by the Federal Court. In the macroeconomic scenario, investors continue to monitor developments around tax reform.

According to preliminary data, Bovespa rose 0.67% to 103,108.61 points. In the week, the index accumulated a drop of 3%, due to investor fears about the country’s budget problems.

(Report by André Romani and José de Castro; edited in Spanish by Rodrigo Charme)

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