Brazilian Swap Rates Tumble as Real’s Inflation Concern Eases

Brazil’s swap rates fell the most in four years as the real rebounded, easing speculation that a two-month currency rout will spur the central bank to sustain the pace of increases in borrowing costs to curb inflation.

The real climbed for a second day as President Dilma Rousseff called for a plebiscite on political reform after meeting with leaders of the protest group Passe Livre in response to two weeks of street protests demanding improved public services and criticizing corruption. The currency also strengthened as concern eased that a cash crunch in China may undermine the global economy.