Latin American currencies strengthened on Wednesday on bets that global market volatility could lead the US Federal Reserve to strike a cautious tone when it announces its decision on interest rates later in the day, Reuters reported. A slump in oil prices and growing signs of weakness in China’s economy have stoked bets that the Fed could proceed with only one increase later this year. The Mexican peso rose 0.5% and the Colombian peso advanced 0.4%, despite a resumed decline in oil prices after a brief rebound the day before. The Brazilian real strengthened 0.8%.
