Except for Argentina and Peru, LatAm currencies set to strengthen this year.
BY LBC STAFF
Currencies in Brazil, Chile, Colombia and Mexico are expected to strengthen compared with the US dollar, while those of Argentina and Peru should weaken, Bulltick Capital Markets predicts.
Brazil’s real will likely average 1.75 to one US dollar this year. That compares with a year-end 2011 rate of 1.86 per dollar.
Mexico’s peso will average 11 to one US dollar compared with 13.95 last year.
Chile’s peso should average 470 pesos to one US dollar compared with 519 last year.
And Colombia’s peso will likely average 1,750 per US dollar compared with 1,938 last year.
Meanwhile, Argentina’s peso should average 4.7 per US dollar, a weakening compared with the 2011 year-end rate of 4.3 per dollar.
Similarly, Peru’s sol will likely average 2.8 per US dollar, a slight weakening compared with the 2.7 last year.
Bulltick also predicts the Dominican peso will weaken – reaching an average of 42 pesos per US dollar compared with the 2011 year-end rate of 38 pesos.
Bulltick also predicts that the Venezuelan government will maintain the official exchange rate of 4.3 Bolivares fuertes per US dollar this year.
© Copyright Latin Business Chronicle
FX Outlook 2012
Local currencies per US Dollar
Sources: Bulltick Capital Markets (2012 forecast), XE (year-end 2011 rates)