Brazil’s real strengthened from a five-month low as the central bank planned to support the currency by rolling over the remaining foreign-exchange swaps that mature next month.
The real gained along with most emerging-market currencies, rising 0.5 percent to 2.4104 per dollar at 10:10 a.m. in Sao Paulo after declining yesterday to 2.4227, the weakest since Aug. 22. Swap rates on contracts maturing in January 2015 fell two basis points, or 0.02 percentage point, to 11.18 percent.
Developing-nation assets rose today as Turkey’s central bank governor Erdem Basci said that it’s necessary to use borrowing costs to rein in inflation after India’s central bank unexpectedly raised its target lending rate to curb increases in consumer prices and defend the rupee. The developing nations took steps as the U.S. Federal Reserve begins a two-day meeting.
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