BRASILIA/SAO PAULO: Brazil’s currency rebounded strongly after the central bank vowed to defend it with every weapon it had, lifting the real off all time lows struck earlier on Thursday as investors fretted over the outlook for Latin America’s largest economy.

A growing political crisis that threatens to unseat President Dilma Rousseff and a deepening economic recession have dragged Brazilian real to its weakest level since the currency was created in 1994.

The real plumbed a new low of 4.248 to US dollar before bouncing back to end the day at 3.99 after central bank President Alexandre Tombini said he was ready to use Brazil’s $371 billion foreign reserves to calm the foreign exchange market if needed.