Latin American FX index rises for eighth straight day

The MSCI's index for Latin American currencies increased by 0.6%, extending its rally for the eighth straight session. Chile's peso was the strongest in five weeks, closing at 786.54 against the dollar. The currency was up 0.5% for the third day as copper prices improved on the back of worries about global banking crunch and hopes of improving demand from top consumer, China. The peso is headed for a quarterly gain of 6.8%, among the top performing currencies in Latin America. The Chilean peso is among the first to recover given the recovery in copper prices after the Silicon Valley fallout over the last couple of weeks, according to Luis Hurtado, director of Latin American FX at CIBC Capital Markets. The rising copper price helped lift the currency of the world's second largest producer, Peru's sol, about 0.9%. Prosecutors are investigating President Dina Boluarte and former President Pedro Castillo for allegedly laundering money as part of a criminal organization. If you take a look at what has happened in Peru over the last six years, they will tell you that they have come used to the political and corruption news that comes out of Peru. In December, Castillo was removed from office after attempting to dissolve Congress before an impeachment vote, while Boluarte ascended to the presidency in the wake of his removal and arrest. Brazil's real added 0.1%, lagging peers, as a highly anticipated fiscal framework was to be finalized by Wednesday. The leaders of Brazil's Congress have indicated that the fiscal rules should be approved quickly once submitted, according to Institutional Relations Minister Alexandre Padilha. In February, Brazil's federal debt grew 1.51% from the month before, as a result of a further increase in issuance costs, according to the Treasury. In February, Brazil created 241,785 formal jobs, far exceeding economists' expectations of 161,000 jobs. Other currencies, including those of Mexico and Colombia, gained 0.8% and 1.4%, taking cues from higher oil prices. The Bank of Mexico is expected to hike its key rate to 11.25%, while the central bank of Colombia is expected to raise its interest rate by 25 basis points to 13% at its meeting on Thursday. The MSCI's index was up 0.8%, reflecting a theme of no more cracks emerging in global banking in recent sessions. Grupo Financiero Banorte said it was about 0.9% ahead of its chairman, saying it was preparing to hire 800 new employees to tap into growing demand from global companies moving their manufacturing operations to Mexico.