President Luiz Inacio Lula da Silva said his government had taken steps to safeguard Brazil’s fiscal rules and reaffirmed his support of incoming central bank chief Gabriel Galipolo, his first public comments since returning to Brasilia following emergency surgery.

Brazil’s real has fallen to its weakest level against the dollar since the currency was introduced in 1994, undercut by investors’ frustration with President Luiz Inácio Lula da Silva's efforts to rein in government spending.

A key piece of President Luiz Inacio Lula da Silva’s spending cut plan is set to be watered down over concerns that changes to a social program will hurt poor people, said the lawmaker in charge of presenting a new version of the bill in congress.