Latin American
stocks reversed losses while currencies gained on Wednesday
after the U.S. Federal Reserve surprised investors by announcing
it would keep its bond-buying program unchanged at $85 billion
per month.
The MSCI Latin American stock index soared
2.7 percent to 3,428.45 following the announcement after having
spent most of the session near unchanged territory.
Brazil's real jumped 2.49 percent to 2.2030
per dollar while the benchmark Bovespa stock index swung
into positive territory, rising 1.22 percent.
Mexico's peso strengthened 1.84 percent to 12.6910
per dollar as the IPC stock index climbed 1.24 percent.
Chile's market was closed for a national holiday.
Latin American currencies had suffered steep losses since
May on concerns a withdrawal of Fed stimulus and higher rates in
the United States could spur a stampede for the exits by
investors who had piled into the region's assets in recent
years.
Reuters
