SAO PAULO: Latin American currencies strengthened on Thursday as investors cautiously returned to emerging markets following a selloff in the previous session.
Stronger-than-expected US retail and inflation figures on Wednesday fostered expectations that the Federal Reserve could increase US interest rates faster than expected, driving traders away from higher-yielding assets. But that move faded on Thursday as bargain-hunting sparked a global rebound.
European stocks rose after posting their longest losing streak of the year, while the dollar rebounded from a three-week low against a basket of developed market currencies.
Latin American markets followed along, with currencies from Brazil, Chile and Colombia rising between 0.3 percent and 1 percent.
The Mexican peso also firmed after concerns that the latest round of talks to overhaul the North American Free Trade Agreement (NAFTA) would fail to make much headway drove it to an eight-month low.
Brazil's benchmark Bovespa stock index jumped 2.4 percent, also supported by a strong batch of corporate earnings figures.
Shares of cosmetics maker Natura Cosm?ticos SA posted their biggest daily gain since 2008 after the company posted strong third-quarter operating profits.
Comments
Comments are closed.