He dollar index upload a 1.7% to 105.17 units in front of a basket of six coins, after reaching the 105.44its highest level since July 3.
Faced with the strength of the dollar, The Mexican peso was trading at 20.5982 per dollar, with a loss of 2.51% compared to the reference price of Reuters on Monday, after weakening in the early morning to 20.8038 units, a level not seen since August 2022.
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With the passing of the hours emerging currencies were severely beaten, while the dollar was strengthening and was headed for its biggest daily rise since March 2023.
“There has already been a very strong reaction, a strong increase in the dollar”said Niels Christensenchief analyst at Nordea. In that sense, he explained that “expectations of looser fiscal policy and a tight labor market point to higher inflation and higher yields”.
At the same time, markets and investors are also focusing their attention on the outcome of the monetary policy meeting of the Federal Reserve of United States to be held this Thursday, where it is expected to announce a 25 basis point cut in the interest rates of the world’s leading economy.
The region’s currencies are devalued
While all emerging market currencies suffered broadly in the face of a global strengthening of the dollar, the Mexican peso stood out with the worst performance.
“The perspective that exists at this moment regarding the Mexican economy is that the impact may be on the commercial side”he opined Marco Cruzdirector in Mexico of the digital broker Taurex.
The main stock index S&P/BMV CPIwhich make up the 35 most liquid companies in the Mexican market, sank 2.5% during the trading session, but turned around and is now rising 0.5% to 51,095.02 points.
For his part, the Brazilian real It depreciated 0.6%, to 5.7859 units per dollar, but now it has turned around and is appreciating 0.8% to 5.6998 units, while the Bovespa index of the B3 bag of Saint Paul go back a 0.4%to 130,190 points.
The Minister of Finance of Brazil, Fernando Haddadsaid on Wednesday that The Government concluded discussions on new measures to strengthen the fiscal frameworkbut noted that the president Luiz Inácio Lula da Silva He will possibly speak with the heads of the Senate and the Lower House before presenting the package.
In Argentina, there are no foreign exchange operations due to a holiday for the “Bank Worker’s Day”, but the S&P Merval win a 4%, while the country risk collapses below the line of the 900 basis points, a minimum since mid-2019.
The operators added that this result could politically benefit the management of Argentine President Javier Milei, who implements a harsh orthodox adjustment in favor of shrinking the State, consolidating the fiscal surplus and reducing inflation, which is still in the three digits. annualized.
For its part, the Chilean peso drops to 0.6%, 961.61 per dollar, after touching 969.10, a level not seen since April of this year. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSArises 0.6% after starting in decline.
The Colombian peso depreciates 0.04% to 4,413.46 units per dollar, after touching its weakest level since May of last year; while in the stock market the stock index MSCI COLCAP slightly gives up 0.03% to 1,359.18 points.
“Today, with the result of the presidential elections in the United States, the feeling of risk aversion engulfs the markets and impacts the performance of peer currencies in the region,” wrote the Acciones y Valores brokerage in Bogotá.
The Peruvian currency, the sunit depreciates a 0.3% to 3.78 units per dollar. Meanwhile, the reference of the Lime Bag go back a 0.4% at 805.61 points.
Source: Ambito
