Brazil’s real advanced after the government removed a tax on foreign investment in real estate funds, prompting speculation inflows will sustain this year’s biggest rally among the world’s major currencies.
The real rose 0.2 percent to 1.9845 per U.S. dollar at 10:09 a.m. in Sao Paulo, extending its gain in 2013 to 3.4 percent, the largest among the 16 most-traded currencies tracked by Bloomberg. Swap rates on the contract due in January 2015 fell one basis point, or 0.01 percentage point, to 7.90 percent.
Brazil exempted foreign investment in real estate funds from the so-called IOF tax, according to a decree published today in the official gazette, prompting speculation more dollars will enter the country.
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