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SAO PAULO, Jan 6 (Reuters) - Verde Asset Management SA, Brazil's largest hedge fund, sees "good chances" that the country's central bank will cut the benchmark overnight lending rate by an out-of-consensus 75 basis points as early as this month to revive a sluggish economy.
In a monthly letter to investors, money managers led by Luiz Stuhlberger said Verde has stepped up positions in fixed-rate debt on expectations of a bigger rate cut. They also said that the local currency, which gained 4 percent in December, has reached "levels of overvaluation not seen in years."
Reporting by Guillermo Parra-Bernal; Editing by Andrew Hay