At its low for the session, the currency lost value by 2.9%, at 5,400 units per dollar, a floor not seen since July 25.
Meanwhile, the Bovespa index of the Sao Paulo stock market It was trading with a decline of more than 2%, in the midst of a wave of risk aversion.
Brazilians go to the polls on Sunday in a divisive election, following a campaign in which left-wing former President Luiz Inacio Lula Da Silva has a considerable lead over incumbent Jair Bolsonaro, according to the latest polls.
The volatility stemming from Brazil’s presidential election, the first round of which will be held this weekend, presents limited risk to “well-positioned” companies in the South American nation.the credit rating agency Fitch Ratings said on Monday.
For its part, the rest of the currency and stock markets in Latin America also exhibited significant devaluations this Monday, because the higher overall risk aversion by the winds of recession they pushed investors to migrate towards the favorite safe-haven asset, the dollar.
Agents’ attention will be focused on the signals that result from upcoming interventions by Federal Reserve officials about what comes after the 75 basis point increase in interest rates by the agency last week.
The Fed’s decision was accompanied by its peers in the United Kingdom, Sweden, Switzerland, Norway and Taiwan, which also increased the benchmark cost of money.
“These events generated greater fear of a global recession, which triggers an outflow of risk assets towards liquidity, sharp falls in raw materials, especially oil, and a rise in the dollar to levels not seen since 2002,” he said. a Bancolombia report. “It is evident that the (US) Central Bank is willing to destroy some demand in order to bring inflation down to target levels,” he added.
Markets will also pay attention during the week to US consumer confidence data for September on Tuesday; as well as the inflation observed in September of the euro zone and its unemployment rate for August, on Friday.
Price of the dollar in Chile, Monday, September 26
Chilean peso it climbed 1.7% to 986.20/986.50 units per dollar; while the main index of the Santiago stock market, the IPSA, gained 0.68%, to 5,242.03 points.
Price of the dollar in Mexico, Monday, September 26
the mexican peso lost 0.3% to 20.2446 units per dollarits lowest level in seven weeks and the main S&P/BMV IPC stock index, which includes the 35 most liquid companies in the local market, fell 0.40% to 45,208.73 points
Price of the dollar in Colombia, Monday, September 26
In Colombia, the weight it weakened 0.69% to 4,469 units per dollar and the benchmark MSCI COLCAP index lost 0.30% to 1,153.81 points.
Price of the dollar in Peru, Monday, September 26
The Peruvian currency the sol, lost 0.43%, to 3.927/3.930 units per dollar. Meanwhile, the benchmark of the Lima Stock Exchange fell 0.19% to 493.63 points.
Source: Ambito
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