According to Bloomberg markets, Brazil’s currency, the Real, is the best performer this year among 16 major currencies that Bloomberg tracks.  It should come as a wonder to no one, since the country boasts a surging economy and one of the developing world’s highest benchmark interest rates, at 12.5%.  Brazil’s case is further helped by an air of stability, a perception which has brought billions of dollars of foreign capital into Brazil and is contributing to the country’s $50 Billion-a-year trade surplus.  Last week, Brazil’s Central Bank, took its boldest step yet in stemming the rise of Real, by engaging in a large series of reverse currency swaps, in which the Bank essentially bought USD in the futures market.  Analysts interpreted the move as a sign that Brazil is about cut interest rates.  Bloomberg News reports:

“Now, if this is not a sign that they are holding the real and will have to cut 50 basis points at the next monetary policy meeting, I don't know what is,” said one economist.