Brazil Swap Rates Rise on Outlook for Inflation; Real Advances

Brazil’s shorter-term swap rates climbed to a six-week high as economists raised their inflation forecast for 2014, adding to speculation that the central bank will extend borrowing cost increases.

Swap rates on the contract maturing in January 2015 rose for a fourth straight day, increasing 10 basis points, or 0.10 percentage point, to 10.71 percent at the close of trading in Sao Paulo. The real appreciated less than 0.1 percent to 2.3574 per U.S. dollar, the strongest level since Dec. 27.