Brazil Swap Rates Sink as Itau Sees 2013 Rate Cuts; Real Gains
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Brazilian swap rates tumbled to a record as Itau Unibanco Holding SA forecast the central bank will resume cutting borrowing costs next year to bolster an economy that grew at half the pace analysts projected.
Swap rates on the contract due in January 2014 plunged 23 basis points, or 0.23 percentage point, to 6.87 percent at the close in Sao Paulo, the biggest drop since May 4. The real gained for a fourth day, appreciating 0.5 percent to 2.0774 per dollar. It rallied yesterday the most since June after Brazil removed capital controls that curbed appreciation.