Brazil’s real rallied the most among emerging-market dollar counterparts as central bank President Alexandre Tombini said the intervention program to support the currency and curb import prices will be extended into 2014.
Brazil’s central bank said its current pace of interest rate increases remains appropriate to rein in consumer prices, repeating language it used to justify previous half-percentage-point increases. Swap rates rose.
Coming up in the global economy this week, euro-area inflation may have picked up in November from a four-year low the prior month, demand for U.S. durable goods excluding transportation equipment probably improved for the first time in four months and the Brazilian central bank will probably increase its benchmark interest rate. Elsewhere, strikes by auto and mine workers probably caused South Africa’s economy to slow last quarter, while Sweden’s rebounded after shrinking from April through June.