Brazil Swap Rates Plunge on Industrial Production; Real Declines

Brazil’s swap rates declined the most in a week as industrial production contracted more than analysts forecast, damping speculation policy makers will accelerate the pace of borrowing-cost increases.

Swap rates on the contract due in January 2015 fell 23 basis points, or 0.23 percentage point, to 9.67 percent. The real depreciated 1.1 percent to 2.2547 per dollar, after losing 9.4 percent in the second quarter, the worst performance among major emerging-market currencies.