LatAm assets slide as surging US yields lift dollar, oil gains
EWZ•Latin American stocks and currencies fell 0.8% and 1.1%, respectively, as rising US Treasury yields lifted the dollar. Brent crude gained 3.2%, while the Chilean peso fell 1.3% to its lowest since July 2025.
1. Regional markets fall
Most Latin American assets declined alongside broader markets as surging Treasury yields propelled the dollar to a one-year high and investors pulled back from risk-sensitive emerging-market assets. The 10-year US Treasury yield rose to 5.344%, its highest since 2002, before easing; the US dollar index gained 0.5%.
2. Country moves vary
Brazil’s real weakened 0.9%, while the Ibovespa edged up 0.4%, helped by Petrobras, which rose 1.7% as oil prices gained. Mexico’s peso fell 1.4% to its lowest since December 2025, and Chile’s peso dropped 1.3% to its lowest since July 2025; Chilean economic activity fell 1% year over year in August.
3. Other regional developments
Moody’s raised Bolivia’s sovereign rating for the second time this year, citing a material decline in credit-event risk. Colombia’s central bank unexpectedly raised interest rates by a quarter point, and the country’s peso fell 0.5%. Argentina’s stocks slid 2.3%; the IMF said discussions on the country’s program review would continue over the coming weeks.
