Alejandro Cuadrado News
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Peru’s sol tumbled, extending its weekly decline to the biggest in almost four years, as commodity prices fell on concern growth in the world’s largest economies is slowing.
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Peru’s sol slid to a nine-month low, raising the possibility that the central bank may intervene to strengthen the currency, according to economists at Banco Bilbao Vizcaya Argentaria SA and Nomura Holdings Inc.
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Chile’s peso fell to a six-week low as the price of copper, the country’s biggest export, plunged on a weaker outlook for global economic growth.
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Chile’s peso traded at a one-week high after European leaders reached a $13 billion deal to save Cyprus from a disorderly default that would force it to exit the euro, spurring demand for emerging-market assets.
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Chile’s peso held within 0.1 percent of a four-month high as strategists split on whether the central bank might intervene for the first time since 2011 to slow the rise of Latin America’s strongest currency this year.
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Peru’s sol declined, extending its biggest quarterly drop since 2008, after the central bank increased reserve requirements to prevent dollar inflows from fueling gains in the local currency.
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In the Caribbean village of Tuchin, Colombian families who’ve woven straw hats for generations are seeing their livelihoods threatened by competition that shows China’s double-edged impact in Latin America.
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Chile’s peso rose to a three-week high as emerging-market currencies appreciated after Group of Seven policy makers criticized market interventions.
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Peru’s sol touched the lowest level in two weeks after the government said it’s ready to boost dollar purchases to weaken Latin America’s best-performing currency of the past year.
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Peru’s consumer prices rose in July at the fastest pace in almost a year as a recovery in domestic demand gathers pace.
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