SAO PAULO: Latin American currencies slipped on Tuesday following strong US housing data, but caution prevailed ahead of Fed Chair Janet Yellen's speech on Friday.
New US single-family home sales unexpectedly reached a nearly nine-year high in July, offering additional support to growing expectations of a US rate hike this year.
Traders have been anxiously awaiting Yellen's remarks at the annual central bankers meeting in Jackson Hole, Wyoming, for clues over the timing of a rate increase.
Recent comments by Fed policymakers have generally taken a hawkish tone, but minutes from its last policy meeting suggested officials remained divided over the issue.
Mexico's peso weakened for the fifth straight day, and the Colombian peso fell about 1 percent, despite rising crude prices .
Stock markets were mixed, however, as strength in the US economy could also spell good news for companies from its Latin American trading partners.
Brazil's benchmark Bovespa stock index rose 0.8 percent after posting its biggest daily loss since June the day before.
Traders also awaited suspended President Dilma Rousseff's trial at the Senate, set to begin on Thursday. Lawmakers are widely expected to confirm her impeachment, but many traders expect that to be a trigger for further inflows into Brazil.
Mexico's IPC stock index fell 0.6 percent despite a nearly 20 percent jump in shares of ICA as optimism over the beleaguered construction firm's prospects grew as it participates in major tenders.
Comments
Comments are closed.