Latin American currencies firmed on Tuesday, capitalising on the dollar's weakness, as worries of greater economic impact from the coronavirus raised expectations of an interest rate cut by the US Federal Reserve. MSCI's index of Latam currencies and its index of regional stocks both rose 0.2%, recovering from a day of declines.
Brazil and Argentine markets remained closed for holidays. Analysts expected them to see steep declines when the reopen on Wednesday as they catch up with the virus-fuelled rout.
Mexico's peso rose 0.5%, coming off 11-week lows. The currency looked to break a three-session losing streak as the dollar index, which measures the greenback against six major rivals, was down 0.1%.
Chile's peso gave up early gains to trade flat. Prices of copper, the country's biggest export item, fell as investors fear dwindling demand as the virus spreads.
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