Brazil's President Michel Temer. Photo: Reuters / Ueslei Marcelino

Michel Temer has rejected calls for his resignation, despite bribery allegations reported in a leading Brazilian paper, reports the Financial Times.

Citing positive economic indicators Temer said “my government this week had its best moment and its worst moment,” playing down the significance of the purported bribery revelations.

Brazil’s real was down 8% versus the dollar, while the Brazilian benchmark stock index dropped as much as 10.47% before closing down 8.8%.