Venezuela’s government held televised talks with the opposition for the first time since the outbreak of protests against inflation and rising crime that have roiled the nation and left at least 39 dead.
Brazil’s stocks, bonds and the currency rallied as a drop in President Dilma Rousseff’s approval rating fueled speculation she may struggle to win re- election after back-to-back years of sputtering growth.
Venezuela’s government said it will relax exchange controls imposed over the past decade as it attempts to ease shortages of basic goods and damp deadly protests over the rising cost of living. Bonds rallied.
Venezuelan bonds rallied as the government said it will ease exchange controls and get as much as $7 billion in financing from China and Russia as it attempts to damp three-week-old protests that are expected to continue.
Argentina scrapped some of its currency controls a day after devaluing the peso as policy makers sought to stem a financial crisis and restore investor confidence by reversing measures that drove foreign reserves to a seven-year low.
Chilean interest-rate swap rates rose to the highest level in more than a year as traders increased bets that the central bank will raise borrowing costs tomorrow for the first time since September 2008
Venezuelan President Hugo Chavez’s political agenda could delay a currency devaluation expected by investors to at least early next year as the government tries to consolidate power in regional elections in December.