Brazil’s Real Surges as Election Results Trickle In


Brazil’s Real Surges as Election Results Trickle InThe Brazil real advanced at the fastest pace since Aug. 2013 after President Dilma Rousseff prepared to square it off with Aecio Neves, her main rival in her re-election bid. Investors have been warming to Neves due to his consistent pledge to curb inflation.

The real jumped 3.6 percent to trade at 2.3732 per U.S. dollar as of 9:04 a.m. Sao Paulo time after rising to 2.5073 per dollar, a five-year low, on Oct. 3.  Swap rates, which measure expectations of changes in interest rates, dropped 0.18 percentage point, or 18 basis points, to 11.73 percent on Monday for the contract that matures in January 2016.

“There is some euphoria going on as financial markets are celebrating the possibility that Neves may become the next president,” Paulo Petrassi, a Florianopolis, Brazil-based fixed-income manager at Leme Investimentos Ltda., told Bloomberg News.

Brazil’s Superior Electoral Court reported that Rousseff had garnered 42 percent of the votes cast as of Sunday, compared with 34 percent for Neves and third-placed Marina Silva with 21 percent, with 99.99 percent of the votes counted.

The South Africa’s rand also advanced versus the dollar after Deputy Reserve Bank Governor Lesetja Kganyago was appointed the new central bank governor.

The rand was up 0.6 percent to trade at 11.2726 per dollar as of 3:11 p.m. Johannesburg time. The yields on the securities that mature in December 2026 plunged seven basis points or 0.07 percentage points to 8.28 percent.

The appointment of Kganyago, who will succeed Governor Gill Marcus who is retiring in November, was welcomed by investors as he isn’t a surprise candidate. To register for a free 2-week subscription to ForexMinute Premium Plan, visit

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