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A sluggish start to 2014

Latin American financial markets have had a soft start to 2014, with currencies continuing to fall against the US dollar, benchmark equities declining and the regional EMBI bond yields rising. Looking ahead, whilst we think that the bulk of the fall has already happened, we’re forecasting a further weakening of exchange rates in 2014. The key exception is Mexico, where we expect the peso to strengthen against the US dollar.

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