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Snapshot: USDBRL Down 2%, Relief Rally In Swaps Curve

BRAZIL

Brazilian Real Extends Gains To 2%, Relief Rally In Swaps Curve

  • With EURUSD hitting the best levels of the session and broad dollar indices edging lower, the Brazilian Real has been further boosted, now up 2% on Tuesday.
  • Strong commitments to the fiscal trajectory from lower house speaker Lira adding additional tailwinds to the firmer risk backdrop that has seen a notable strengthening in iron ore and crude prices.
  • Swap rates have negated much of yesterday's selloff, with the curve shifting lower by between 7-21 basis points.
    • USDBRL down 1.89% at 5.2784
    • BRLMXN up 1.64% at 3.837
    • S&P E-Mini Future up 9.5 points (0.21%) at 4485
    • Bloomberg Dollar Index down 0.23% at 1149.22
    • WTI Crude Oil (front-month) up $1.68 (2.56%) at $67.32
    • Brazil Ibovespa up 2533.7 points (2.16%) at 119937.8
  • Brazil DI Swaps:
    • 2-yr -7 bps at 8.41%
    • 5-yr -21 bps at 9.77%
    • 10-yr -19 bps at 10.44%

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