Brazil Traders Seek Cover as Real Just Keeps on Tumbling.

"We should expect more inflation and, consequently, rates are set to rise", Vinicius Oliveira, a spot foreign-exchange trader at Banco da China Brasil, said before the Treasury department resignations. (Bloomberg) -- Rates traders are becoming increasingly skeptical that Brazilian officials can rein in skyrocketing inflation, with new spending plans adding to risks for the nation's currency and central bank market interventions failing to make much of an impact. While the Banco Central do Brasil has been among the biggest movers globally in terms of interest-rate hikes and acted directly in the foreign-exchange market, its currency interventions have been clearly flagged ahead of time, potentially blunting their effectiveness in stemming the real's decline. [Extracted from the article]