Yields on Brazilian interest-rate futures contracts dropped for a third day on speculation the European debt crisis will prompt policy makers to make deeper cuts to the benchmark rate at the two-day monetary policy meeting beginning today.
Brazil’s central bank set reserve requirements on short dollar positions held by local banks in its third attempt since October to stem a rally in the currency. The real fell for a third consecutive day.
Brazilian President Dilma Rousseff’s re-election bid lost support in a poll conducted by Datafolha as faster inflation and slower growth damaged her government’s popularity. She still had more than the level of support a candidate will need to win the first round this year.