Latin American Currencies Surge Most Since 2008 Amid Rate Allure

Latin American currencies are posting the biggest back-to-back rally since 2008 as prospects for low interest rates in developed economies bolster the outlook for high-yielding assets.

The Bloomberg JP Morgan Latin America Currency Index extended a two-day gain to 3.6 percent as of 12:56 p.m. in New York as central banks signaled a readiness to act should the U.K.’s decision to leave the European Union roil global markets. A measure of emerging-market peers from around the world rose 1.6 percent in the span.

“When you have 40 percent of global bonds in negative interest rates, Latin America provides an interesting cushion for deal hunts,” said Juan Carlos Rodado, the director of Latin America research at Natixis North America in New York.

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