Wells Fargo Warns Latin America FX Rally to Reverse by Year-End
The region's currencies have soared this year, part of a broad emerging markets rally buoyed by the dollar's steady decline. But further dollar weakness is unlikely to last in the near term, as sticky US inflation limits the Federal Reserve's capacity to cut interest rates, according to Aroop Chatterjee, a macro strategist at the bank. His forecasts for Latin American currencies are among the most pessimistic in median estimates tracked by Bloomberg.
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