In the News

Oil producer Colombia’s peso COP= was little changed in choppy trading after a four-session decline. On Wednesday, the currency hit levels last reached more than a year ago.

Analysts predicted that Colombia’s central bank would decide to either maintain or speed up the pace of cutting its benchmark interest rate.

Juan Perez, director of trading at Monex, said a 50 basis points cut is priced in more than a 75 bps reduction. However, the central bank could also exercise caution with a 25 bps cut ahead of the Nov. 5 U.S. elections.

MSCI’s index tracking Latin American stocks .MILA00000PUS lost 0.4%, while an index tracking regional currencies .MILA00000CUS edged up 0.1% against the dollar.

The indexes are on track for their biggest one-month drop since June, hurt primarily by risk averse investors ahead of a tight U.S. presidential race next week.

Some investors have increasingly bet that Republican candidate Donald Trump will win, helping to lift the dollar and U.S. Treasury yields, although he is still neck and neck with Democratic Vice President Kamala Harris in several polls.

Analysts see Trump at loggerheads with most left-leaning governments in the region and his policies on trade, security and migration are considered inflationary and unfriendly to trading partners.

Mexico’s peso MXN= edged up 0.3%, hovering near 20 to the dollar. The currency is set for declines in its fourth month out of five and has been the most sensitive to volatility in the runup to U.S. elections.

“A Harris victory would mean a continuation of the current situation and the peso could have a tremendous opportunity to strengthen because all of a sudden, Mexico is not under threat and there is no speculation about the trade partnership,” Perez said.

Amid an ongoing judicial overhaul, the country’s lower house of Congress approved a measure that makes changes to the constitution “unchallengeable.”

Brazil’s real BRL= dipped 0.2%, on track for its fifth-straight day in the red. Data showed unemployment in the region’s largest economy fell in the three months through September, underscoring a robust economy and bolstering expectations for interest rate hikes.

Among equities, Brazil’s Bovespa .BVSP dipped 0.1%, while Mexico’s main stock index .MXX lost 0.3%.

Key Latin American stock indexes and currencies: