Brazil‘s real fell to a five-month low as the devaluation of Argentina‘s peso fueled aversion to emerging-market currencies.
The real depreciated 0.7 percent to 2.4175 per U.S. dollar at 10:06 a.m. in Sao Paulo, extending its weekly decline to 3.1 percent, the biggest since August. Swap rates on contracts maturing in January 2015 increased six basis points, or 0.06 percentage point, to 11.22 percent and were up 30 basis points since Jan. 17.
Brazil’s currency dropped for a fifth straight day in its longest stretch of declines since November as Argentina said it will ease currency controls after the peso fell the most in 12 years. Argentina tried to stave off an economic crisis as the central bank’s foreign reserves tumbled to a seven-year low while Turkey sold dollars to prop up the lira and South Africa’s rand declined to a five-year low.
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