The Strength of Latin American Stocks and Currencies
MSCI Index Sees Surge, Currencies Rise
The MSCI index tracking Latin American stocks (MILA00000PUS) experienced a significant surge of nearly 1%. This rise propelled the index to a near one-month high.
The gauge of Latin American currencies also demonstrated strength. Brazil's real (BRL) reached a near one-month high against the US dollar, appreciating by approximately 0.8%. This increase was fueled by positive data indicating a 1.7% growth in the service sector during June.
Brazilian Real Stays Strong
Growth in Services Sector
The real continued its upward trend, attaining a two-week high. Data revealed a slightly higher-than-expected 0.5% monthly growth in Brazil's service sector activity in July.
Expectations of Rate Hikes Pause
The majority of Latin American currencies experienced gains on Thursday. This positive movement was influenced by expectations that the Federal Reserve might pause interest rate hikes next week.
Brazil's Real Strengthens Further
Brazil's real briefly touched a near one-month high against the US dollar before settling at an increase of approximately 0.3%. This rise followed the release of data indicating continued strength in the country's service sector.
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