Brazil’s real rallied the most this month on speculation policy makers will intervene to stem its losses after central bank President Alexandre Tombini said last week they will do whatever is needed to slow inflation.
Brazilian consumer prices rose less than economists forecast in March, while the annual rate exceeded the top of the central bank’s target range for the first time since November 2011. Swap rates fell.
Brazil swap rates fell to a two- week low as analysts in a central bank survey lowered their forecast for the target lending rate, adding to speculation that increases in borrowing costs will be limited.
The Bovespa index advanced as Eike Batista’s mining unit MMX Mineracao & Metalicos SA surged after Valor Economico reported the government is planning to help the Brazilian billionaire’s struggling companies.
Yields on most Brazilian interest- rate futures contracts rose after Spain sold more bonds than expected, spurring bets that stability in Europe may prompt the central bank to slow its pace of interest-rate cuts.
Brazil’s swap rates climbed as an economic index increased more than forecast after inflation exceeded policy makers’ target range, fueling speculation they will increase borrowing costs as soon as next week.