Latin-America-Venezuela Bolivar Gains on Speculation Chavez to Rein in Budget
Venezuela’s bolivar rose the most in a month on speculation President Hugo Chavez will take measures to offset a plunge in oil revenue after winning a referendum yesterday that eliminates term limits. The bolivar jumped 2.7 percent to 5.65 per dollar in unregulated trading at 3:34 p.m. New York time from 5.80 on Feb. 13, traders said. It had slumped 4.3 percent over the past month amid concern that Chavez was putting off tax increases and spending cuts as he focused on winning the referendum, which allows him to extend his presidency beyond 2013 “We’re not expecting Chavez to see the light and take a more pragmatic approach, but he will at least now be able to make the necessary adjustments to address the widening deficit,” said Edwin Gutierrez, who manages $5 billion of emerging-market debt, including Venezuelan securities, at Aberdeen Asset Management Plc in London.
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