Brazil Swap Rates Climb on Central Bank Outlook; Real Declines

Brazil’s swap rates rose to a three-week high on a signal that the central bank may increase borrowing costs to contain inflation.

Swap rates on the contract due in July 2015 increased four basis points, or 0.04 percentage point, to 8.16 percent at 6 p.m. in Sao Paulo, the highest on a closing basis since Oct. 17. The real depreciated 0.2 percent to 2.0510 per dollar.