Brazil’s real led global gains as a poll showed support for President’s Dilma Rousseff re-election bid narrowed before the October vote amid the slowest economic growth in two decades.
The real climbed 1 percent to 2.2357 per U.S. dollar at 9:19 a.m. in Sao Paulo, the biggest gain among 31 major currencies tracked by Bloomberg. It pared its weekly decline to 0.7 percent. Swap rates, a projection of interest-rate moves, rose two basis points, or 0.02 percentage point, to 10.97 percent on the contract maturing in January 2016. There were down 15 basis points since July 11.
Brazil’s currency has climbed 5.6 percent in 2014 on speculation a new government may take over that will be more favorable to the economy. Rousseff would win 44 percent of the vote in a second round against candidate Aecio Neves, who would get 40 percent, according to the July 15-16 poll published yesterday in the newspaper Folha de Sao Paulo after markets closed. A previous poll, conducted July 1-2, showed Rousseff winning the runoff with 46 percent against Neves’s 39 percent.
“The result shows the opposition is getting much stronger,” Joao Paulo de Gracia Correa, a currency trader at Correparti Corretora de Cambio in Curitiba, said by phone.