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SAO PAULO: Latin American currencies strengthened on Wednesday as hopes that major oil producers may agree to cut output lifted crude prices.
Russian Foreign Minister Sergei Lavrov said if there is consensus among the Organization of the Petroleum Exporting Countries and non-OPEC members to discuss the issue, "then we will meet".
Oil prices rose as a result, fostering demand for currencies such as the Mexican peso. Colombia's peso strengthened 0.5 percent, following an almost 2 percent slump on Monday.
"A tentative recovery in oil prices translates into relief for emerging market currencies," said Joo Paulo de Gracia Correa, a trader at SLW brokerage in Curitiba, Brazil.
The Brazilian real jumped more than 1 percent to its highest so far this year to a session high of 3.94 per US dollar.
Trading volumes were thin as dealers awaited the outcome of the Brazilian Finance Minister's meeting with representatives of Moody's Investors Service, which put the country's investment grade under review for a downgrade in December.
Chile's peso rose 0.5 percent, tracking a rally in the price of copper, the country's main export. Traders in copper markets continued to close bearish bets ahead of China's
Lunar New Year Break.
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