Latam assets hit multi-week lows on US-Iran stalemate, Fed rate worries
ILF•Latin American currencies fell 0.1% to a two-month low and stocks dropped 0.5% to a more than one-month low as US-Iran talks stalled and investors worried about further Federal Reserve rate hikes. Brent crude rose 1.3%, while Brazil’s August current account deficit reached $5.1 billion.
1. Regional markets retreat
Latin American currencies and stocks fell to multi-week lows on Monday as a stalemate in US-Iran negotiations and expectations of higher US interest rates weighed on sentiment. Brent crude gained 1.3% after President Donald Trump rejected Iran’s peace proposal to resolve the conflict and reopen the Strait of Hormuz.
2. Country moves and data
Brazil’s real fell 0.5% to a six-week low, while the Bovespa rose 0.2%. Brazil’s current account deficit widened to $5.1 billion in August, above the $4.9 billion economists expected. The Mexican peso fell 0.7%, the Colombian peso dropped 1.4%, and the Peruvian sol declined 1.2% to its lowest since June 9.
