Latin American Currency Roundup: Neutral On Regional FX As Rate Hikes In H221 Help Stem Losses

• Fitch Solutions is broadly neutral on Latin America FX in the short term as it expects that the bearish impact of less favourable commodity prices will negate the bullish factor of increasing hawkishness among the region's central banks.  
• In the longer term, it is expected that the region's major currencies will largely depreciate against the US dollar, particularly as the US Federal Reserve begins to tighten monetary policy and near-term bullish tailwinds begin to fade. 
• While the agency maintains an extremely bearish view on the Argentine peso in the short- and long-term due to persistent inflation, the Colombian peso, Mexican peso and Peruvian sol are likely to appreciate from spot prices in H221.

(Source: Fitch Solutions)