LatAm currencies mixed as tight Brazil elections keep investors on edge
SPY•Latin American currencies were mixed as Brazil’s presidential race tightened, with the real up 0.42% but on course for its biggest weekly drop since mid-August. The Bovespa rose 0.4%, while Indonesian stocks fell 11.6% after MSCI warned about the country’s emerging-market status.
1. Brazil election focus
Latin American currencies were mixed on Friday as polls showed Senator Flávio Bolsonaro’s lead over President Luiz Inácio Lula da Silva narrowing to a technical tie ahead of the October 25 election. The Brazilian real rose 0.42% to 5.0751 per dollar, and the Bovespa gained 0.4%, though both were on course for their biggest weekly declines since mid-August.
2. Regional market moves
MSCI warned that Turkey and Indonesia could be downgraded from emerging-market status, citing a lack of transparency over trading practices. Turkish equities fell nearly 3%, while Indonesian stocks dropped 11.6%, their biggest daily decline since 1998. The IMF urged Latin American governments to cut public debt and raise productivity while global conditions remain favorable.
