Foreign investors are betting the worst rout in Latin American currencies since 2008 will extend into next year as commodity export prices slump and rising U.S. bond yields lure money out of the region.
The Bloomberg JPMorgan Latin America Currency Index of the region’s six most-traded currencies fell 9.6 percent this year and got within 1 percent of a four-year low. International investors boosted wagers to a record $21.7 billion this week that Brazil’s real will keep falling, data compiled by BM&FBovespa SA show. Analysts surveyed by Bloomberg only forecast Mexico’s peso will avoid further losses in the region next year.
