MSCI Latam FX up 0.4%, stocks gain 1.1%
Interest rate decisions in the U.S., Brazil awaited
Chile’s central bank holds rates steady
Vale, Grupo Mexico gain after upbeat Q4 results
By Purvi Agarwal
Jan 28 (Reuters) - Latin American currencies were mixed on Wednesday, with the Brazilian real slightly weaker against the dollar ahead of central bank meetings in both countries, while stocks gained following a slew of corporate earnings.
The dollar (=USD) fell to a four-year low after President Donald Trump brushed off the currency’s decline, saying its value was “great”, though later recovered some ground.
Markets will be closely watching comments from Federal Reserve policymakers later in the day on the interest rate path outlook that could set the tone for markets this week.
The central bank is expected to hold rates at its meeting.
“That (Trump’s comments) reinforced one of the narratives that is behind the USD’s slide to begin with - the premise that the U.S. administration is okay with a weaker USD,” said Thierry Wizman, global currency and rates strategist at Macquarie Group.
“The move in the dollar has also prompted a lot of hedging, mainly to protect the U.S. dollar exposure in foreign investment accounts.”
In Latin America, the Brazilian real (BRL=) slipped 0.1% ahead of the central bank’s monetary policy decision, which is expected to leave the Selic rate at the near two-decade-high of 15%.
Mexico’s peso (MXN=) fell 0.5%, after logging its biggest one-day jump since April on Tuesday. Colombia’s peso (COP=) depreciated the most, down 1% against the dollar. On the flip side, Chile’s peso (CLP=) gained 0.3%, aided by rising copper prices. Chile’s central bank held rates steady at 4.50% on Tuesday, as expected.
Still, MSCI’s index tracking Latin American currencies (.MILA00000CUS) was 0.4% higher, set for its eighth session of gains.
Stocks in the region also gained, largely boosted by a slew of corporate earnings and rising commodity prices. Brazil’s Vale (VALE3.SA) gained 2.5% after its iron ore production rose to 336.1 million metric tons in 2025, surpassing rival Rio Tinto’s Pilbara operations in Australia for the first time since 2018. The benchmark index (.BVSP) was up 1.7%.
Bourses in Colombia (.COLCAP) and Argentina (.MERV) rose 0.9% and 0.6% respectively.
A 2% gain in Grupo Mexico (GMEXICOB.MX) , one of the world’s largest copper producers, after it nearly doubled its fourth-quarter net profit on higher metals prices and stronger volumes helped lift the Mexican benchmark index (.MXX) . Banorte (GFNORTEO.MX) , gained 4.6% after the financial group said on Tuesday that fourth-quarter profit climbed 16% from a year earlier on strong consumer loan growth.
The recent surge in commodity prices has helped lift stocks of miners and producers in resource-heavy LatAm countries, setting up MSCI’s gauge of regional equities (.MILA00000PUS) for its eighth consecutive session of gains. Elsewhere in emerging markets, ratings agency Fitch downgraded Afreximbank to junk and withdrew future ratings - a final move in a relationship with the African lender that had become combative.
Key Latin American stock indexes and currencies:
Latin American market
prices from Reuters
Equities Latest Daily %
change
MSCI Emerging Markets 1555.38 1.73
(.MSCIEF)
MSCI LatAm (.MILA00000PUS) 3215.81 1.52
Brazil Bovespa (.BVSP) 185064.76 1.73
Mexico IPC (.MXX) 69405.54 0.77
Chile IPSA (.SPIPSA) 11564.78 -0.53
Argentina Merval (.MERV) 3272785.8 0.88
Colombia COLCAP (.COLCAP) 2510.7 0.58
Currencies Latest Daily %
change
Brazil real (BRL=) 5.1861 -0.11
Mexico peso (MXN=) 17.214 -0.50
Chile peso (CLP=) 854.69 0.28
Colombia peso (COP=) 3657.11 -1.04
Peru sol (PEN=) 3.3373 0.22
Argentina peso (interbank) 1440 0.34
(ARS=RASL)
Argentina peso (parallel) 1465 0.17
(ARSB=)

GMBXF

VALE

OTGL

BRAZ

Latin American currencies showed mixed results, with the Brazilian real slightly weaker ahead of central bank meetings. Stocks gained 1.1%, driven by strong corporate earnings, particularly from Vale and Grupo Mexico. The MSCI LatAm index rose 0.4%, marking its eighth session of gains. The market is closely watching the Federal Reserve's interest rate decision, expected to remain unchanged. Commodity price increases have positively impacted resource-heavy stocks in the region, while Fitch downgraded Afreximbank to junk status.

EMERGING MARKETS-LatAm FX mixed, stocks climb ahead of Fed decision