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Currencies unlikely to go into freefall

All of Latin America’s currencies will probably weaken further against the dollar in the near-term as we approach a first interest rate hike by the Fed. But with most currencies no longer appearing to be fundamentally overvalued, we do not expect exchange rates to end 2015 much weaker than they are now. The key exception is the Brazilian real, which we now think could sink to 3.20/$ by year-end.


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