Emerging Markets: LatAm currencies climb as investors assess geopolitics, US data

YPF SA

13/01/2026 20:30

Mexican peso hits strongest level since July 2024

Colombian peso strengthens as crude prices spike

Potential US tariffs on Iran traders to hit some EM

Argentina's inflation exceeds expectations

Updates to mid-session trading

By Johann M Cherian, Ragini Mathur and Twesha Dikshit

Jan 13 (Reuters) - Most Latin American currencies climbed on Tuesday, with pesos of Mexico and Colombia leading gains, as investors assessed simmering geopolitical tensions and a key U.S. inflation report.

Colombia's peso COP= strengthened 2.2% to touch its highest since June 2021 as investors returned from a public holiday and took stock of potential threats to the U.S. Federal Reserve's monetary policy independence that had sparked a dollar selloff and a consequent rally among Latin American assets on Monday.

Colombia's currency also tracked a more than 2% spike in crude prices on the likelihood that protests in oil-rich Iran could disrupt crude supplies. Oil exporter Mexico's peso MXN= also appreciated 0.5% to reach its strongest levels since July 2024.

U.S. President Donald Trump pledged to impose a 25% tariff rate on any country that does business with Tehran, sharpening the focus on Brazil and China - key trading partners with Iran among other developing economies. Brazil's real BRL= was flat, while the Bovespa index .BVSP slipped 0.7%.

These developments were on the back of a U.S. intervention in oil-rich Venezuela earlier in the month that led to former president Nicolas Maduro's capture.

     "Contrary to the Maduro capture from America’s backyard, a military operation in Iran is a completely different ballgame considering Iran’s importance in the region, but also the risk of retaliation, particularly regarding the Strait of Hormuz," said Achilleas Georgolopoulos, a senior market analyst at brokerage XM.

Higher crude prices also helped gains among top energy companies in the region. Brazil's Petrobras PETR3.SA gained 2.7%, while Argentina's YPF  YPFDm.BA added 2% and Colombia's Ecopetrol ECO.CN soared 3.7%.

More broadly, MSCI's Latin American equities index .MILA00000PUS was down 0.5%, while the corresponding currency gauge .MILA00000CUS was little changed. Both indexes hit record highs in the previous session.

On the data front, inflation in Argentina closed 2025 slightly above the expectations of analysts.

Investors also assessed a report that said lending giants JPMorgan Chase JPM.N and Citigroup C.N were in to finance a $1 billion Argentina pipeline. The local peso climbed ARS=RASL 0.8%.

Meanwhile, U.S. consumer prices were broadly steady in December leaving bets for at least two interest rate cuts this year intact.

Elsewhere, Indian government bonds declined after Bloomberg Index Services deferred the inclusion of Indian bonds in its flagship Global Aggregate Index, sending yields higher.

Key Latin American stock indexes and currencies at 2004 GMT:

Latin American market prices from Reuters
Equities
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
1471.87
0.39
MSCI LatAm .MILA00000PUS
2820.69
-0.36
Brazil Bovespa .BVSP
161981.93
-0.72
Mexico IPC .MXX
66372.11
-0.56
Chile IPSA .SPIPSA
11254.48
1.7
Argentina Merval .MERV
3035717.56
-1.34
Colombia COLCAP .COLCAP
2220.07
0.3
Currencies
Latest
Daily % change
Brazil real BRL=
5.3753
flat
Mexico peso MXN=
17.8474
0.46
Chile peso CLP=
885.98
-0.4
Colombia peso COP=
3629.5
2.2
Peru sol PEN=
3.359
0.03
Argentina peso (interbank) ARS=RASL
1457
0.79
Argentina peso (parallel) ARSB=
1485
1.35

 (Reporting by Ragini Mathur, Twesha Dikshit and Johann M Cherian in Bengaluru
Editing by Rod Nickel and Sahal Muhammed)

 ((Ragini.Mathur@thomsonreuters.com;))