Latin American currencies changed little last Tuesday as investors waited for the results of the US Federal Reserve's latest meeting. The minutes of the meeting would provide signs as to when the dreaded cut back on bond buying would take place.
As investors waited for the details of the Fed's meeting, the Mexican currency weakened 0.1%. This was after it hit its strongest level in almost 3 weeks. Previously, the Mexican peso rallied around 1.5%. This was due to the results of elections held last Sunday. Similarly, the Brazilian real dropped 0.1% due to a holiday in Sao Paulo, Brazil's financial hub. The holiday kept most market players away. Meanwhile, the Chilean peso fell 0.1%. This decline was due to a drop in the price of copper, a main export product of Chile.
For years, the US central bank's bond-buying program has provided a stimulus for the market. For the emerging markets, the program provided a steady source of dollars that sought higher returns.
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