Brazil’s real led a rally in emerging-market currencies as prices for its commodity exports advanced while a report showing slower-than-forecast inflation last month sent swap rates to a six-month low.
The real gained 1.1 percent to 3.7150 per dollar as of 10:04 a.m. in Sao Paulo, the most among 24 currencies from developing nations tracked by Bloomberg. Swap rates on the contract maturing in January 2017, a gauge of expectations for interest-rate moves, declined 0.2 percentage point to 13.85 percent, the lowest level since Aug. 20.
Brazil’s currency has surged this month as prices for iron ore and oil jumped and speculation grew that a corruption scandal will lead to the downfall of President Dilma Rousseff, who already faces an effort to impeach her for allegedly misreporting government finances. The leader of the largest party in Brazil’s lower house of Congress said Rousseff might not finish her term and that protests scheduled for this weekend over the so-called Carwash corruption scandal will be decisive for her future, newspaper Valor Economico reported Wednesday.
Brazil Energy Insight 
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