The currencies in the region fell on Wednesday, in the middle of a wave of aversion to riskier assets. This comes after the United States announced that it is analyzing impose tighter trade restrictions on Chinawhich had a negative impact on the market despite Federal Reserve officials indicating that an interest rate cut is imminent.
A US government report, which is considering imposing severe trade restrictions as part of an offensive against China in the chip sector, weighed on semiconductor stocks and put pressure on Wall Street.
However, senior officials at the US Federal Reserve said on Wednesday that Interest rate cuts are getting “closer”after noting the improved trajectory of inflation and a now more balanced labor market, comments that seem to set the stage for a first downgrade at the central bank’s meeting in September.
“We anticipated an environment of marked risk aversionconsidering reports that the Joe Biden administration is considering tougher measures on technology trade with China; and this morning’s inflation figures in the United Kingdom,” said the Ve Por Más brokerage.
How currencies are quoted today in Latin America
In the midst of that scenario, The Brazilian real fell 0.65% to 5.4648 units per dollarr, in line with its peers. Meanwhile, the main index of the B3 stock exchange in Sao Paulo, the Bovespa, advanced 0.22%, to 129,339 points, after a negative opening in the session.
For its part, The Mexican peso fell 0.5% to 17.7427 per dollar. Meanwhile, the leading S&P/BMV IPC index, which groups the most traded shares on the local market, lost 0.56% to 54,069 points, also amid the start of the corporate results report.
At the same time, The Chilean peso fell 1% to 919.20/919.50 units per dollarin line with its regional peers amid the global wave of aversion to risky assets. Meanwhile, the main index of the Santiago Stock Exchange, the IPSA, rose a slight 0.04% to 6,567.11 points.
The Colombian peso depreciated by 0.8%at 4,018 units per dollar, in its third session of decline; while on the stock market the MSCI COLCAP stock index rose 0.25% to 1,377.05 points.
“The behavior of the currency pairs in the region seems to be significantly influenced by The electoral panorama in the United States has been a relevant topic this week“, said the brokerage firm Acciones y Valores, in Bogotá.
The Peruvian currency, the sol, depreciated by 0.4%, to 3.723/3.727 units per dollar.Meanwhile, the Lima Stock Exchange benchmark fell by a slight 0.08% to 768.75 points.
Source: Ambito
