Latin American FX Outperfoms in Down Day for Emerging Markets

Latin American currencies outperformed emerging-market peers on Wednesday on the back of a wavering dollar, as investors wait for Federal Reserve Chair Jerome Powell’s speach at the Jackson Hole symposium later this week.

The Brazilian real led gains in the developing world, followed by the Colombian and Mexican pesos. Meanwhile, the overall currency index closed 0.2% lower, its sharpest drop in almost three weeks, dragged down by a selloff in the Taiwan dollar and the Korean won.