Currencies in Mexico and Brazil weakened on Monday in line with emerging market currencies elsewhere as the dollar surged to 16-month highs and as concerns on global growth persisted. The euro and pound were weaker due to rising political risk in Italy and Britain, adding to the greenback’s gains from last week when the U.S. Federal Reserve signaled it would stay on its hawkish path. Risk appetite was also pressured by signs of slowing growth in China. The Mexican peso lost the most in the region, down 0.4 percent, while Brazil’s real declined 0.3 percent. The Chilean peso fell 0.3 percent and hit its lowest in a week. Stocks on Brazil’s Bovespa index climbed with energy and material shares leading gains. Financial markets in Colombia were closed for a local holiday.
Key Latin American stock indexes and currencies at 1254 GMT: