Bursting With Anticipation

January 2005 | Currency Forecast

The Uruguayan peso has firmed in line with our bullish expectations by around 17% since July, thanks to an exceptionally strong economic performance and confidence that the incoming administration under Tabare Vazquez, of the left-wing Encuentro Progresista - Frente Amplio (EP-FA) coalition, which will be sworn in in March, will be well placed to tackle the country's fiscal difficulties. It is now around its highest level since September 2002, but the rally has been limited recently due to the current global bounce in the US dollar. We think that the unit can continue to appreciate in the near term, with

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