Latin American Currencies Lose Value Against U.S. Dollar

In what has been a rough three months for some of the major economic forces in South America, the currencies in Argentina, Brazil and Venezuela are falling in comparison to the U.S. dollar – drawing comparisons to the low levels reached during the 2008 financial crisis.

The Venezuelan bolívar and the Brazilian real are respectively the two currencies that have been devalued the most, with the U.S. dollar rising 43 percent against the real in the last two years, 19 percent of the increase occurring within the last six months.

Brazilian authorities announced last week a $60 billion program they hope will halt the slide of the real. Similar to moves in Indonesia and Turkey, the move highlights a growing fear in the region that devaluations highlight serious economic threats throughout the region.
“We are in the midst of a significant rebalancing, and the growth outlook for emerging market countries has deteriorated,” said Jens Nordvig, a currency strategist at Nomura in New York, according to the New York Times .