The local currency advanced after China, Brazil’s largest trading partner, pledged to accelerate construction of some major projects and reduce companies’ tax burdens. The real also gained as President Dilma Rousseff’s administration was said to be studying a tax increase on Brazil’s top earners to raise revenue and narrow an expanding budget deficit.
The real appreciated 0.5 percent to 3.8032 per dollar at 9:52 a.m. in Sao Paulo after closing Sept. 4 near the all-time low reached in 2002. Swap rates, a gauge of expectations on interest-rate moves, rose 0.02 percentage point to 14.88 percent on the contract maturing in January 2017.
Brazil Energy Insight 
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