The Federal Reserve hints at a possible rate hike, leading to a general decline in Latin American assets

Investors are assessing policy signals from the US Federal Reserve (hinting that rates may rise this year) as well as details of the temporary ceasefire agreement reached between the US and Iran. Following the announcement, the US Dollar Index soared to its highest level in more than two months, putting pressure on Latin American currencies. The MSCI Index tracking Latin American currencies fell by 0.6%, while the Latin American stock index dropped by 0.9%. The Mexican peso was the biggest loser, declining by 1.2% and is set for the largest single-day drop in over a week. Expand