Brazil Real Rises as Newspaper Reports Mantega May Be Replaced
Brazil’s real climbed for a third day as Valor Economico reported that Finance Minister Guido Mantega may be replaced, spurring speculation that a new economic team will help promote growth.
The currency appreciated 0.6 percent to 2.2129 per U.S. dollar at 9:57 a.m. in Sao Paulo, paring its quarterly drop to 8.6 percent. The central bank sold $3.3 billion in currency swaps today to support the real. Swap rates on contracts due in January 2015 fell 12 basis points, or 0.12 percentage point, to 9.94 percent, reducing their increase since the end of March to 145 basis points.
President Dilma Rousseff is considering replacing Mantega with central bank president Alexandre Tombini, Valor reported, without saying where it got the information. Henrique Meirelles may return to his former post as head of the monetary authority, according to the newspaper. Finance Ministry and central bank officials declined to comment.
“Today, we have these rumors of a change in Rousseff’s economic team,” Joao Junior, a fixed-income trader at Icap in Sao Paulo. “Meirelles is the man of the market, and foreign investors would see that positively.”
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