Peru’s central bank sold the most dollars in three months to support the sol as a probe into police conduct undermined confidence in the government.
Brazil’s swap rates declined as a report showed retail sales rose less than forecast in September, adding to speculation that the central bank will limit increases in borrowing costs.
Mexico’s benchmark peso bonds headed for their worst week since August on speculation the U.S. Federal Reserve will curtail a monetary stimulus program that has buoyed emerging-market assets.
Juan Jimenez will become Peru’s third cabinet chief to leave the government in two years, at a time when President Ollanta Humala’s approval rating is hovering at a record low.
Yields on Mexico’s shorter-term peso bonds fell to the lowest on record as speculation mounted that slowing economic growth will prompt policy makers to reduce benchmark borrowing costs this week.
Brazil will evaluate demand for rolling over currency swaps that mature Nov. 1 as the auction today of a field holding the country’s biggest oil discovery may fuel a rally of the real.
Brazil’s central bank today will auction as much as $1 billion in foreign exchange swaps to extend maturities on contracts that expire next month, matching a similar sale carried out yesterday.
Brazil’s central bank tomorrow will auction as much as $1 billion in foreign exchange swaps to extend maturities on contracts that expire next month, matching a similar sale carried out today.
The Mexican peso’s implied volatility fell to a two-month low as traders reduced bets in the options market while U.S. lawmakers wrangle over a spending deal before the government’s borrowing authority lapses.
South America is the next retail frontier as Brazil, Uruguay and Chile top China and India for new expansion opportunities.
"The retail sales came in on the weak side."
- Pedro Tuesta on Nov 13, 2013