Latin American currencies recovered due to the weakness of the dollar

Latin American currencies recovered due to the weakness of the dollar

Most Latin American currencies closed with gains on Fridayin the midst of a slight global drop in the dollar and less aversion to risky assets, as a result of the news of an advance in the negotiations in the United States to raise the public debt ceiling.

However, the growing expectations of a possible new rise in interest rates by the Federal Reserve after the latest data on the world’s leading economy, put a share of uncertainty in the markets.

The dollar index, which measures the greenback against a gray of six major currencies, fell around a slight 0.03%, but remained near two-month highs.

The Mexican peso was trading near the close at 17.6279 per dollar, with a gain of 1.2% against Thursday’s Reuters reference price. Over the course of the week, it added a return of 0.4%. The main stock index S&P/BMV IPC, which includes the 35 most liquid companies in the Mexican market, rose 0.39% to 53,952.42 units.

Meanwhile, Mexico’s economy grew in the first quarter slightly below what had been preliminarily estimated, amid a weak performance of agricultural activities, which was offset by services and manufacturing.

The Brazilian real appreciated 0.9%, to 4.9900 units per dollarwhile the Bovespa index of the B3 stock market in Sao Paulo rose 0.6% to 110,762.49 points.

The Minister of Finance, Fernando Haddad, affirmed on Friday that Brazil is about to enter a cycle of low interest rates, noting that inflation is “more behaved” and that the exchange rate remains stable at a level lower than the start of the government.

In addition, The Chilean peso rose 1.05% to 799.80/800.10 per dollar but, during the week, it accumulated a setback of 0.41%. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, fell 0.2% to 5,609.21 units.

The Colombian peso appreciated 1.22% on Friday to 4,438 units per dollar, with which it accumulated a rise of 2.1% in the week. On the stock market, the MSCI COLCAP stock index ended up 0.22% at 1,100.97 points.

The Peruvian sol ended the session with a decline of 0.54% to 3.6750/3.6770 units per dollar. While the referential of the Lima Stock Exchange added 0.58%, to 535.81 points.

Source: Ambito

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