The Brazil’s real advanced the most in a week on bets that President Dilma Rousseff may hire a team of economic advisors who will jumpstart the flagging economy and on speculation the U.S. Federal Reserve won’t hike interest rates soon.
The real appreciated 0.6 percent to trade at 2.5443 per dollar as of 11:44 a.m., Sao Paulo time, up from a 3.2 percent decline last week. Swap rates, which measure expectations of swings in Brazil’s interest rates, plunged 0.09 percentage point to steady at 12.56 percent for the contract that matures in January 2017.
“There has been a lot of expectation that a new economic team will be able to restore growth,” Camila Abdelmalack, a Sao Paulo-based economist at CM Capital Markets, told Bloomberg News.
IstoE Dinheiro magazine disclosed on Nov, 9 that Henrique Meirelles, a former central banker, is being backed by former President Luiz Inacio Lula da Silva for the position of finance minister. Meirelles is widely favored by investors due to what they term as being independent and having a pro-market mindset.
In order to boost the real, Brazil auctioned foreign-exchange swaps worth $197.4 million on Monday as it implements an intervention program that started last year.
Meanwhile, the South Korea’s won advanced the most in a month due to weak U.S. jobs data that reduced investor appetite for the dollar.
The won ended a seven-day losing streak, surging 0.8 percent to trade at 1,084.95 per dollar in Seoul close. This was the strongest appreciation since Oct. 9. The won advanced 0.3 percent to 9.51 versus the Japan’s yen after earlier touching 9.39 on Nov. 3, its highest level in six years. U.S. firms had hired 214,000 workers in October against an estimate of 235,000. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at email@example.com