Mexico's peso likely to struggle in 2021: poll

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Mexico's peso likely to struggle in 2021: poll

Colombia"s peso leads losses as oil prices dip Mexican peso likely to struggle in 2021 - poll By Ambar Warrick Nov 3 Reuters - Most Latin American currencies fell on Wednesday, under pressure from high U.S. Treasury yields and a strong dollar, as investors awaited signals from the Federal Reserve on when it plans to begin tapering its massive stimulus program. Colombia"s peso fell 1% in early trade, the most among its regional peers, as a drop in oil prices weighed on the crude exporting country"s currency. Mexico's peso went down by 0,7%. The peso is going to be in a struggle in 2022 as its interest rate advantage over its emerging market peers keeps narrowing due to a cautious central bank and interest rate hikes in other economies. The real index of Latin American currency lost 0.4%, while the MSCI's index of Brazil lost 0.4%. Minutes from the Brazilian central bank"s last meeting showed the bank had been considering an even larger rate hike than the 150 - basis point raise last week, underscoring an aggressive response to soaring inflation. The recovery after the COVID-19 recovery has made it a recurring theme for most economies. The Fed might push it to bring back its plans for policy tightening. What will be decideve for the dollar, will be what the FOMC has to say about inflation in its statement, chairman Jerome Powell, foreign exchange and emerging market analyst at Commerzbank, wrote in a note, said Antje Praefcke, a foreign exchange and emerging market analyst at Commerzbank. The stock index of MSCI fell 1%, while currencies fell 0.1%, while emerging markets retreated ahead of the Fed. After the Ministry of Energy and Mines said a rural community would lift a blockade at the country's largest coppermining, Antamina, which had rattled markets this week, Peru's sol appeared to have arrested recent losses. The discussion between the government and the community are scheduled to resume on Friday, but sentiment remained on edge. Peruvian markets have been stung this year due to a bit of movements against the country's major mining sector. Latin American stocks fell in early trade, with MSCI's index down 0.9%.