Latin American forex hits two-week low, strong dollar and pressure from commodities weigh on stock market.

On Wednesday, stock markets and currencies in Latin America both declined, under pressure from a strong US dollar. At the same time, investors are weighing whether the recent market rebound triggered by the victory of right-wing candidates in Peru and Colombia can continue. The MSCI index tracking Latin American currencies fell by 0.5%, hitting a two-week low. The US dollar continued to strengthen, reaching a 13-month high. Following a sell-off led by technology stocks in global markets on Tuesday, investors rushed into the US dollar for safety, coupled with increasing expectations of a rate hike by the Federal Reserve. The stock markets in Peru and Colombia fell by 0.8% and 1.9% respectively, with both markets potentially closing lower for the third consecutive trading day. The currency markets also performed poorly, with the Peruvian sol falling by 0.5% and the Colombian peso retreating from a five-year high, weakening by 0.3%.