Brazil Swap Rates Rise on Concern Weak Real Will Stoke Inflation
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Brazil’s swap rates climbed as the real declined for a fourth week, fueling speculation that import prices will rise and fan inflation.
Swap rates on the contract due in January 2015 rose five basis points, or 0.05 percentage point, to 8.60 percent in Sao Paulo, extending their increase this week to eight basis points. The real depreciated 0.4 percent to 2.0515 per dollar today, the lowest level this year, and has fallen 0.8 percent since May 17. Its stretch of weekly losses is the longest since October.