Brazil Swap Rates Drop on Evidence of Slowdown; Currency Rises

Brazil’s swap rates fell to a record low as reports this week showed industrial production grew less than economists forecast and vehicle sales contracted, spurring bets policy makers will make more cuts in borrowing costs.

Swap rates on contracts due in January 2014 fell two basis points, or 0.02 percentage point, to 7.59 percent, a record low on a closing basis. The real appreciated 0.2 percent to 2.0189 per dollar in Sao Paulo after reaching 2.0173, the strongest intraday level since Sept. 17.