Latam FX Rises against Softer Dollar, Vale Weighs on Brazil’s Bovespa

The IMACEC economic activity index of the world's largest copper producer still ended 2022 in negative territory as it faced a slowdown after a rapid post-pandemic recovery. The Colombian peso snapped three days of losses and gained 0.3% to 4654 against the dollar, while oil producer Mexico's peso added 0.5%, supported by firm crude prices and a weak dollar.

All eyes were on the Fed's rate decision, with investors pricing a 25 basis points rise later in the day and betting on an end to the rate hikes soon. "There is this view in the marketplace that, yes, the Fed is going to hike, but they're very near the end of that cycle, so they'll signal a more neutral stance," said Rachel Ziemba, founder of Ziemba Insights.

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