Trading in most Latin American countries picks up on Monday, with most currencies appreciating

Most Latin American currencies rose against a weaker dollar on Monday, while stocks were mixed as investors ​assessed the chances of easing hostilities between the U.S. and Iran amid the ongoing negotiations.

Iran said it wanted ‌a lasting end to the war and rejected pressure to reopen the Strait of Hormuz.

Tehran rejected a ceasefire proposed by the U.S. ​through mediator, and said a permanent end to the war was necessary, the official IRNA news agency ​reported.

Risk appetite swept through world markets earlier in the day following reports that a framework to end ⁠hostilities has been put together and exchanged with Iran and the U.S. overnight.

Geopolitical tensions around Iran and ​the Strait of Hormuz are driving energy supply disruptions, market volatility and urgent diplomatic efforts, with ceasefire talks offering limited near-term ​clarity, said Bob Savage, head of markets macro strategy at BNY.

Trading in most Latin American countries picks up on Monday after most markets were closed for the Good Friday holiday, with most currencies appreciating.

The Mexican peso led the gains, appreciating 0.6% against the dollar to its highest in more than 10 days, while Brazil’s real rose 0.2%.

Peru’s sol added 0.9% in light volume ahead of an interest rate decision later this week where the central bank is widely expected ‌to ⁠hold its main lending rate steady.

The Middle East war has led to some sharp re-pricing of interest rate expectations around the world, with Latin America currently presenting a mixed picture as policymakers grapple with the uncertainty.

Policymakers at Chile’s central bank briefly considered the option of raising interest rates at their March meeting due to the geopolitical uncertainty, minutes from their March meeting showed ​last week.

Brazil’s central bank cut ​its interest rates when it ⁠met in March, while Mexico’s central bank also loosened its monetary policy in its last meeting.