Latam stocks, FX on track to cap data-heavy week with gains
The post Latam stocks, FX on track to cap data-heavy week with gains appeared first on Monex USA.
On the day, the equity gauge fell 1.3%, while the currency index lost 0.7%.
The U.S. dollar =USD, meanwhile, held largely steady against peer currencies after January inflation data came in below expectations.
“Latin American equities and currencies are trading lower due to cautiousness and uncertainty about the U.S. dollar losing its safe-haven role, with investors confused about which assets to move toward given stagnant U.S. economic conditions,” said Juan Perez, director of trading at Monex USA.
PERUVIAN PRESIDENT IS UNDER PRESSURE
Among regional markets, Peruvian stocks .MXNUAMPESCPGPE, which had led the region with a 45% surge in 2025, fell by 1.2%.
Congress late on Thursday gathered enough signatures to open debate on the removal and censure of Peruvian President Jose Jeri following a scandal tied to reports of undisclosed meetings with a Chinese businessman.
The sol PEN=, after snapping a five-session winning streak a day earlier, was flat.
By contrast, the Argentine peso ARS= was on track for its best week since October, as markets welcomed a political win for President Javier Milei as his flagship labor reform bill got the Senate’s approval.
Brazil’s real BRL= teetered on the edge of erasing its weekly gains, slipping into negative territory after inflation data suggested the economy is cooling.
The figures fueled expectations the central bank could begin cutting rates as soon as March. Retail sales volumes data, released Friday, confirmed the trend — falling in
December from the previous month.
That would likely be an inflection point for a currency that drew strong support through 2025 from Brazil’s 15% rates. The real’s “carry” appeal could face a tougher test if policymakers kick off an easing cycle, something the central bank has already hinted at in the minutes of its previous meeting. The real lost 0.3% on Friday.
Despite the day’s losses of 0.9%, the country’s stock index .BVSP was still set for a sixth straight week of gains, its longest winning streak since May last year.
The week’s data barrage kept inflation in focus. Brazil showed signs of easing price pressures; in Mexico and Argentina, inflation accelerated, Peru held rates steady, and a poll suggested Chile would lower interest rates.
Faced with so much information, some investors locked in profits. Chile’s .SPIPSA and Colombia’s .COLCAP equity markets were on course for a third
consecutive weekly decline, their longest losing run in more than a year and a half.
Outside Latin America, Russia’s central bank surprised the market by cutting its policy rate by 50 basis points to 15.5% and signaled it could go lower still to support a slowing wartime economy strained by elevated borrowing costs. The rouble gained 0.8% against the dollar