Brazil Swap Rates Climb After Selic Decision; Currency Declines

Brazil’s swap rates rose on concern inflation will accelerate after the central bank said it plans to keep borrowing costs at a record low for a “prolonged period” and U.S. lawmakers expressed optimism they can avert a budget crisis.

Swap rates on the contract due in January 2014 climbed two basis points, or 0.02 percentage point, to 7.31 percent at the close in Sao Paulo. The real declined 0.2 percent to 2.0987 per dollar. The currency fell Nov. 23 to a three-year intraday low of 2.1172, spurring policy makers to intervene in the foreign-exchange market.