| Currencies in major Latin American countries are tumbling in the face of falling commodity prices, a sluggish growth outlook in China and fears of an imminent rate increase by the Federal Reserve. This year, the Colombian peso has lost 21% of its value against the dollar, hitting a record low, while the Chilean peso and Mexican peso have depreciated by 12% and 10%, respectively.
Latin America has been at the forefront of a global selloff in emerging markets ahead of an expected increase in U.S. interest rates as the American economy improves. With rates low in the U.S., investors had flocked to emerging markets, where yields were higher and assets denominated in foreign currencies held out the promise of potential profits...............................................Full Article: Source
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