The real climbed the most in one week after Moody’s Investors Service said Brazil’s economic growth would have to be much lower than 2 percent before the nation’s credit rating outlook is lowered again.
The currency rose 0.6 percent to 2.3650 per dollar at 10:11 a.m. in Sao Paulo, the biggest jump on a closing basis since Dec. 27. Swap rates on contracts maturing in January 2016 fell three basis points, or 0.03 percentage point, to 11.67 percent.
Moody’s analyst Mauro Leos said yesterday in a telephone interview that a change in Brazil’s outlook to negative is more likely this year than a reduction in its credit grade if economic growth is “much weaker” than expected. The ratings company changed the outlook to stable from positive in October. The Baa2 rating is two levels above junk.
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