The real declined to a one-week low a day after Brazil posted a trade deficit and foreign-exchange outflows, reducing the currency’s allure.
Brazil’s swap rates climbed after the central bank signaled in minutes of its last meeting that it would keep raising borrowing costs to curb inflation.
Brazil’s central bank signaled today it will continue tightening monetary policy as above-target inflation remains persistent. Swap rates rose.
Brazil’s budget deficit in January was wider than economists estimated, complicating government efforts to avert a credit rating downgrade.
Brazil’s real dropped the most in emerging markets as the widest government budget deficit in four years revived concern that fiscal deterioration will lead to a reduced credit rating.
The Ibovespa extended its fourth straight monthly decline after a slower-than-expected expansion of the U.S. economy dimmed the outlook for Brazilian exporters.
Brazil’s economy grew in the fourth quarter more than economists forecast as an increase in investment offset a drop in industrial production.
Brazil’s real rose the most in emerging markets as Latin America’s biggest economy grew more than forecast in the fourth quarter, adding to the currency’s allure for international investors.
Brazil’s central bank halved the pace of key rate increases yesterday, signaling the end of its tightening cycle is near as policy makers seek to tame inflation without further jeopardizing growth.
Brazil’s central bank halved the pace of key rate increases, signaling the end of its tightening cycle is near, as policy makers struggle to tame inflation without further jeopardizing growth.
"Monetary tightening has the benefit of controlling or perhaps reducing inflation and that creates favorable growth conditions."
- Guido Mantega on Feb 27, 2014