SAO PAULO: Latin American stocks and currencies fell on Thursday after US Federal Reserve policy minutes revived bets on an interest rate increase as soon as next month.
The minutes of the US central bank's April meeting showed officials believed a June hike would be warranted if data suggests faster growth, rising inflation and solid employment.
Higher US interest rates would in turn raise borrowing costs in emerging markets.
Weakness in commodities including iron ore also weighed on demand for assets from exporters of basic products. Crude prices fell below $48 per barrel, pressured by an unexpected build in US stocks.
Shares of Brazilian oil company Petr?leo Brasileiro SA slipped 0.6 percent, weighing on the country's benchmark Bovespa stock index.
The Mexican peso touched a three-month low, triggering speculation that the central bank could act to buffer the slump through spot dollar sales or by increasing interest rates.
The bank resorted to both measures at an impromptu meeting in February as the peso tumbled to its record lows near 19.50 per US dollar.
A majority of the central bank's policymakers believed the peso could depreciate even further, with one saying there is space to tighten policy without significantly affecting economic activity, the minutes of the bank's last policy meeting showed.
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