Latin American stocks and currencies mostly fell on Monday as the trade dispute between the United States and other leading economies worsened, but central bank intervention kept the Brazilian real steady.
International use of the Euro slipped last year because of the debt crisis in Europe, but the US dollar held its own as the world’s leading currency for reserves held by central banks, according to the European Central Bank.
Mexican central bank Governor Agustin Carstens said the Peso’s weakness is “transitory” and the currency is likely to resume its upward trend, along with other Latin American currencies.
G20 leaders have moved towards agreeing that China's currency should have a wider role in global finance. The G20 is to study whether to include the Chinese Yuan within the basket of currencies that make up the IMF Special Drawing Right.
Argentina is satisfied with the outcome of the G-20 ministerial meeting after the proposal to regulate commodities prices was turned down, particularly in the food chapter, and because it was agreed that the best way to address current tensions is to stimulate supply.
US Treasury Secretary Timothy Geithner reached out to Brazil by citing a shared concern - China - and endorsing Brazil's approach for dealing with global economic distortions.
Countries risk undermining the global economic recovery if they use their currencies to try to boost domestic growth, the head of the International Monetary Fund warned on Tuesday in a newspaper interview.
Global stock markets closed sharply Friday amid investor fears that Greece's debt crisis could halt the global economic recovery.
Brazil’s Real fell on Friday for the first time in three days as the government stepped up efforts to limit gains in the currency. The real lost 0.6% to 1.7384 per dollar at the end of the week after increasing 2.4% in April and 1.1% for the week.
International credit rating agency Standard and Poor's downgraded on Wednesday Spain's credit rating from “AA+” to “AA” with a negative outlook. The move comes a day after S&P gave Greek bonds a junk rating and lowered Portugal's credit rating from “A+” to “A-”.