Latin American Slump Ends After Two-Year Lows

After reaching more than two-year lows last week, Brazil's real has bounced back approximately 7 percent while Mexico's peso has rebounded by more than 5 percent. "There is a lot of caution out there due to the way the dollar dropped in the last couple days," said Francisco Diez, director of emerging market trading at RBC Capital Markets in New York. Mauricio Rosal, Chief economist at Raymond James in Sao Paulo, stated, "Really the situation can only be ameliorated with a resolution to these uncertainties in Europe." "Until then, the trend will be a stronger dollar and a weakening of those currencies not considered safe havens," he said.