BRASILIA: Latin American stocks and currencies rose sharply on Friday, helped by gains in commodity prices and as investors took a breather from a barrage of US tariff policy headlines.
MSCI’s index for Latin American currencies was up 1.1% by 1520 GMT at its highest since July, while the gauge of regional stocks jumped 3.2%, set for its best day in three months.
“The postponement of US tariffs until 2 April and favorable political dynamics are generating a constructive environment for LatAm FX,” analysts at Societe Generale wrote, adding they were “constructive” on Latam currencies.
Wider interest rate differentials, recent declines in the US dollar and disciplined monetary policy were adding to a more positive outlook for the region’s currencies, they added.
The Mexican peso, among the most sensitive to US tariffs, rose 1%. US Secretary of State Marco Rubio said late Thursday that cooperation with Mexican authorities has improved, but work still needs to be done on curtailing the flow of illegal drugs.
The real jumped 1.2% after data showed Brazil’s debt to GDP ratio fell unexpectedly in January.
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