SAO PAULO: Latin American currencies weakened on Tuesday as fading expectations of a deal to cut global oil production drove crude prices down for a second day in a row.
Oil prices had rebounded last week on hopes of a deal between OPEC and Russia to cut output. A global supply glut and concerns over the demand outlook have kept crude prices near 12-year lows.
The Colombian peso slumped almost 2 percent, while the Mexican peso fell 0.9 percent following a local market holiday on Monday.
"Markets are still focused on oil prices and the situation is still unfavorable for risky assets," analysts from Guide Investimentos wrote in a client note.
Weak demand for high-yielding assets also hit Chile's peso , but losses were limited by higher copper prices. The country's main export hit a four-week high on Tuesday, helped by bets on further supply cuts.
The Brazilian real weakened 0.7 percent and the country's Bovespa stock index fell 2.7 percent.
Shares of Itau Unibanco Holding SA dropped 5.9 percent after Brazil's biggest private bank announced plans to boost loan-loss provisions faster than rivals and slow loan disbursements this year.
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