The weak-dollar trade that lifted Latin America is fading, Bank of America says, as a firmer dollar and strong US jobs data dim Fed rate-cut hopes.
REGIONAL · MARKETS
Key Facts
—The trade: a weak US dollar drove foreign money into Latin American stocks, bonds and currencies through 2025 and early 2026.
—The shift: Bank of America says conviction is fading because much of the move has already happened.
—The pivot: investors are unwinding dollar shorts against developed currencies while keeping them against emerging ones.
Dollar shaky as investors weigh rate outlook, Middle East worries
Strong dollar rally weighs heavier on struggling Asian countries
Dollar eases as investors weigh Middle East hopes, rate outlook
Dollar eases as Middle East hopes outweigh prospects of higher US rates
Morgan Stanley has laid out its view for Latin American currencies in the rest of 2026. The bank sees a mixed picture rather than…
Brazil's Ibovespa fell 0.77% to 169,019 on June 5 as a region-wide dollar bid weakened the real about 2% and dragged Latin…
A softening U.S. greenback could mean it's time for investors to look abroad for opportunities, according to Oppenheimer.
The Latin American Pulse: markets bounced back as Brazil, Chile and Colombia rallied and the dollar paused, with a fresh US…
World Bank sees Latin America growth at just 2.2% in 2026, the weakest of any region, as a Middle East oil shock lifts inflation…
The falls have sparked questions about whether the world's go-to currency is losing its lustre.
