Live Updates > Live Update Details
2025-09-17 00:39:40
Latin American assets remain stable as traders prepare for the Fed and Brazil interest rate decisions on Wednesday. Most Latin American assets remained stable on Tuesday as traders prepared for the dual interest rate decisions by the Federal Reserve and the Central Bank of Brazil on Wednesday. Argentinian assets rebounded modestly, with the Buenos Aires stock market rising nearly 3% after three days of decline, while the peso rose 0.5%, its first gain in nine trading days. President Javier Mille unveiled his 2026 budget, promising strict fiscal discipline but unexpectedly boosting spending on healthcare, education, and pensions. A cooling US labor market has heightened bets on a Fed rate cut, pushing the US dollar lower and reigniting demand for emerging market currencies. With the Fed's upcoming rate cut and Brazil's central bank remaining strong, a widening yield gap could pave the way for a bullish rally in the real. With a weaker US dollar, Brazil's near-two-decade high interest rates could attract carry trades, boosting demand for the real and cementing its leading position among emerging market currencies. Brazil's Finance Minister indicated that interest rate cuts could begin in the coming months. However, analysts point out that even if Brazil restarts its easing cycle, the real will still be an attractive carry currency.
