Brazil Swap Rates Increase on Inflation Concern; Real Declines

Brazil’s swap rates climbed on speculation higher crude costs will prompt the government to raise domestic fuel prices, stoking concern that policy makers will increase borrowing costs to tame inflation.

Swap rates due in January 2015 rose seven basis points, or 0.07 percentage point, to 8.09 percent at the close in Sao Paulo, the highest level since Oct. 4. The real depreciated 0.3 percent to 1.9911 per dollar.