SAO PAULO: Most Latin American currencies weakened slightly on Tuesday as traders avoided big bets ahead of a widely expected US interest rate increase on Wednesday.
A batch of stronger-than-expected US economic data and policymaker remarks have made investors all but certain that the US Federal Reserve will raise interest rates.
Higher US rates could drain capital away from high-yielding emerging markets, weighing on their currencies.
Still, many believe markets have already anticipated the hike, with price reaction hinging on the tone of the policy statement to be released after a two-day meeting.
Against the dollar, the Mexican peso slipped 0.1 percent, while the Brazilian real fell 0.3 percent.
Brazil's benchmark Bovespa stock index declined 0.3 percent, hit by falling shares of state-controlled oil company Petr?leo Brasileiro SA. Stock in Petrobras, as the firm is known, tracked a decrease in crude futures following an increase in US oil inventories.
Shares of meatpacker JBS SA were among the biggest gainers after the company forecast stronger profit margins this year, despite lower-than-expected fourth-quarter earnings reported late on Monday.
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