CARACAS -- Currencies throughout Latin America tumbled in value against the dollar, and the value of Brazil's stock exchange dropped by 8 percent, as the U.S. financial crisis reverberated throughout Latin America.

''The turmoil is really starting to hit Latin America,'' Jane Eddy, a senior regional specialist for Standard & Poor's rating agency, said. ``Everyone is on hold waiting to see what will happen over the next two weeks.''

Still, Eddy emphasized that to date no major Latin American banks have failed and that S&P has not issued warnings for debt repayments by any Latin American governments.

Brazil, Argentina and Mexico -- the largest three economies in Latin America -- took the brunt of the blows.

Trading on Brazil's stock exchange, the Bovespa, was halted twice as prices plummeted by as much as 15 percent in early trading. Brazil's currency, the real, was also hemorrhaging, dropping 7.8 percent against the dollar to its lowest level since 2006.

The Mexican peso fared only slightly better. It dropped 5.4 percent. Its stock market dropped about 7.5 percent on Monday.

Argentina's stock market dropped 10 percent. Its currency lost 1 percent of its strength compared to the dollar.

Christopher Garman, a Washington-based risk analyst with the Eurasia Group, said Brazil's economic fundamentals ``are solid.''

The U.S. credit crunch is rippling toward Latin America at a time when the region has been enjoying its strongest sustained economic growth in 25 years.

While declining demand for Latin American commodities will likely reduce economic growth, many companies remain bullish on Latin America. Fiat, the Italian car maker, plans to invest $3 billion over the next three years in Brazil, where it has a 23 percent market share.

Hilton also announced last week plans to build 150 new hotels in Latin America and the Caribbean over the next five years.

Fernando de la Flor, chief executive of McDonald's in Peru, said business has never been better. He said McDonald's in September opened its first restaurant in Cuzco, the former seat of the Inca Empire, and plans to open four more restaurants in Peru before the end of 2008.

Venezuelan President Hugo Chávez has said Venezuela's $39 billion in foreign reserves will protect the country against a further reduction in oil prices.

But Venezuelan economist Pedro Palma said that Venezuela is not immune from what's happening throughout the region if oil prices keep dropping from lower worldwide demand.

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