Chile's peso leads Latam FX lower

Chile's peso slumped on Monday and currencies in Brazil and Mexico were mixed as a clutch of political crises and uncertainty over a US-China trade deal dulled sentiment.

Chile's peso weakened 1.4%, falling for the fourth straight session and leading declines among Latam currencies.

The currency has lost around 5% over the last three weeks amid massive local protests, which among other demands, have called for a revision to the Chilean constitution. The government yielded to that demand on Sunday.

Brazil's real traded 0.3% higher against a slightly weaker dollar, while Mexico's peso, a weather vane for trade sentiment, was near flat. Data on Monday showed Mexican industrial output was largely unchanged in September compared with August, but down 1.8% year-over-year.

Chilean stocks fell more than 1%, while those in Argentina moved higher.

Colombian markets were closed for a local holiday.

In Bolivia, President Evo Morales stepped down after weeks of protests over a disputed Oct. 20 election, as a report from the Organization of American States revealed serious irregularities in the ballot.

For market participants, the unrest presents some buying opportunity as those assets get cheaper, said Ed Al-Hussainy, a senior currency analyst at Columbia Threadneedle.

"There is going to be a catch-up in these markets as the political uncertainties settle down in the next couple of quarters," Al-Hussainy said.