Brazil’s real fell before comments from central bank President Alexandre Tombini amid speculation that government budget deficits will lead to a lower credit rating as the economy shows signs of contraction.
The currency depreciated 0.3 percent to 2.3962 per U.S. dollar at 10:10 a.m. in Sao Paulo. Swap rates on contracts maturing in January 2015 rose four basis points, or 0.04 percentage point, to 11.26 percent.
“There is still concern regarding a potential downgrade in a moment of uncertainty over economic data,” Reginaldo Galhardo, foreign-exchange director at Treviso Corretora de Cambio in Sao Paulo, said in a telephone interview.
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