Brazil’s industrial production in December fell by the most in five years, surprising analysts, as the central bank continues to boost interest rates in the world’s second-biggest emerging market. Swap rates fell.
Brazil’s swap rates dropped from a two-year high as a report showed yesterday that the economy created the fewest jobs since 2003, reviving speculation the central bank will limit further increases in borrowing costs.
Mexico’s peso tumbled to the weakest since July 2012 along with other emerging-market currencies as concern grew that China’s economic recovery will stall and Turkey failed in attempts to stave off a slide in its lira.
The dollar had the biggest weekly drop against the yen in almost three months as U.S. payrolls rose less than forecast in December, fueling concern the Federal Reserve will slow reduction in bond-buying.
Mexico’s peso rose the most in a month as slower-than-forecast U.S. job growth eased concern the Federal Reserve will move quickly to cut asset purchases that have fueled demand for the Latin American country’s debt.