The real rose 1 percent to 3.0087 per U.S. dollar at 10:04 a.m. in Sao Paulo, the biggest increase among the 16 major currencies tracked by Bloomberg.

The local tender joined an emerging-market rally as subdued inflation in the U.S. added to bets the Fed will keep interest rates low. At the same time, congressional budget measures in Brazil may affect trading, Camila Abdelmalack, an economist at CM Capital Markets in Sao Paulo, said in a telephone interview.

“Economic data in the U.S. is causing the dollar weakness across the board,” Abdelmalack said. “Still, today will be all about volatility as markets are closely watching the congressional votes on the measures to help shore up government finances in Brazil.”

Wednesday’s approval in the lower house of higher benefits for pensioners was the first major setback in Congress for Levy, who is arguing in favor of raising taxes and cutting spending to help avoid a junk credit rating. The vote came just hours after legislators passed the basic text of a broader bill designed to shore up fiscal accounts by limiting pension payments to surviving relatives.

Swap rates on the contract maturing in January 2017, a gauge of expectations for changes in borrowing costs, increased 0.03 percentage point to 13.56 percent.

In the U.S., the Labor Department reported that wholesale prices unexpectedly declined in April from the prior month, indicating that inflation is well-contained as Fed officials consider when to raise the benchmark interest rate.