Brazil’s Swap Rates Rise as Unemployment Rate Falls; Real Drops
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Brazil’s swap rates rose for a fourth day after the unemployment rate dropped to a record low for the month of November, fueling speculation that the central bank will raise borrowing costs to control inflation.
Swap rates due in January 2015 climbed five basis points, or 0.05 percentage point, to 7.87 percent at 3:23 p.m. in Sao Paulo, extending its weekly increase to 23 basis points, the biggest since the five days ended May 25. The currency depreciated 0.4 percent to 2.0770 per U.S. dollar after advancing yesterday to 2.0693, the strongest since Nov. 14.