World’s Least Favored Currencies Suddenly Became Global Leaders
- Latin American currencies gain on liquidity, cheap valuation
- No immediate technical barriers in place even as FX overbought
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Latin American currencies have staged a rebound since mid-May on fledgling signs of renewed global growth and as central banks pour liquidity into the system. Technical barriers to further gains are few and far between.
Brazil’s real has rallied almost 17% since May 15, while the Mexican peso is up more than 11% -- the biggest gains among 24 emerging-market currencies tracked by Bloomberg. Those two currencies had previously led losses, sinking 31% and 21% respectively this year through mid-May.