The Mexican peso and the Brazilian real weakened against a stronger dollar on Friday with Latin American currencies on pace to clock weekly losses amid risk aversion due to uncertainties about global growth and trade.
The peso dropped 0.2 percent and looked set to end the week down for the eight straight week. It has so far shed more than 8 percent over the eight weeks, hammered externally by broad dollar strength, and locally by perceived policy missteps by President-elect Andres Manuel Lopez Obrador's team.
This would be the peso's longest losing streak since June 2016, when Britain's vote to leave the European Union rocked markets.
The central bank issued a strong warning last week to the new government, set to take office on December 1, that any more market denting policy moves may cause an upward risk to inflation.
The MSCI index of Latin American currencies was on course to log a weekly loss of more than 1 percent as all Latin American currencies were set to fall on the week.
Brazil's real slipped 0.3 percent, and was on track to log its fourth straight week of losses.
Stocks on the benchmark Bovespa index dropped 1.2 percent, dragged down by commodity heavyweights.
Iron ore miner Vale slid, in line with a drop in prices of the steel-making ingredient, while oil prices hitting year lows weighed on state oil firm Petrobras.
Most emerging market stocks declined on the day as global growth slowdown fears loomed and trade tensions weighed heading into the week when US President Donald Trump and his Chinese counterpart Xi Jinping will meet at the G20 summit.
Over the weekend Lopez Obrador's team plans to conduct a public consultation - the second of its kind - on a variety of subjects including a new refinery.
Comments
Comments are closed.