Fitch Ratings lowered Brazil's long-term foreign and local currency issuer default ratings outlook to "negative" from "stable," citing the country's continued economic underperformance and an increase in government debt. As an economist wrote in one report: ‘’ We cannot discard the possibility that prices will increase more than expected in response to the weaker (peso) in the coming months.’’ That is, little inflation pass-through has been seen so far from the currency's drop. Among the five most-traded currencies in Latin America, only the Mexican peso is expected to strengthen against the dollar. The rest of the region, which suffers from a deep and apparently long-lasting decline in the price of its commodity exports, will probably maintain steady exchange rates at best.
http://www.reuters.com/article/2015/04/09/markets-emerging-idUSL2N0X61J320150409
