By Niket Nishant

Dec 11 (Reuters) – Latin American currencies climbed on Thursday and were on track for their strongest session in nearly two months as the dollar weakened following an interest rate cut by the Federal Reserve.

Higher-yielding currencies in the emerging markets ‍often benefit when the Fed cuts rates, as investors seek alternative destinations to park capital.

The MSCI index for Latin American currencies rose 0.8% while the stocks gauge edged 0.6% higher.

Brazil’s real led the gains after its central bank left interest rates at a near two-decade high on Wednesday and stuck to its hawkish tone. It was last up 0.8% against the dollar.

The Chilean peso also firmed 0.7%, ‌extending its strong run in the week leading up to the ‌presidential run-off on Sunday where far-right

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