Latin American currencies strengthened on Monday as crude prices rebounded, supporting demand for higher-risk assets.
Oil prices gained 2.5 percent after falling as much as 2 percent ahead of a meeting of major producers on Wednesday.
Currencies from oil-heavy economies, such as the Colombian and Mexican peso , rose sharply.
The Brazilian real tagged along as investors held off making risky bets ahead of a central bank meeting and gross domestic product figures later this week. Risk appetite drove other emerging markets higher, with the South African rand strengthening 2 percent after rating agencies affirmed the country’s investment grade credit rating.
Brazilian stocks inched up, though gains were limited by concerns that a political scandal could delay the country’s fiscal adjustment.
One of Brazilian President Michel Temer’s closest aides resigned on Friday following allegations he pressured the culture minister to approve a property development plan, unsettling investors with the prospect of renewed political turmoil in Latin America’s largest economy. Key Latin American stock indexes and currencies at 1500 GMT: Stock indexes daily % YTD %
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