Blake Schmidt – Bloomberg, 12/21/2012
Brazil’s swap rates rose for a fourth day after the unemployment rate dropped to a record low for the month of November, fueling speculation that the central bank will raise borrowing costs to control inflation.
Swap rates due in January 2015 climbed six basis points, or 0.06 percentage point, to 7.88 percent at 10:25 a.m. in Sao Paulo, extending its weekly increase to 25 basis points, the biggest since the five days ended May 25. The currency depreciated 0.2 percent to 2.0725 per U.S. dollar after advancing yesterday to 2.0693, the strongest since Nov. 14.
Unemployment fell to 4.9 percent last month from 5.3 percent in October, the national statistics agency reported today. The reading was lower than forecast by all except two of 33 economists surveyed by Bloomberg, whose median estimate was for the jobless rate to decrease to 5.1 percent.