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Currencies in the region fell under pressure from the strength of the dollar, but the real recovered

Currencies in the region fell under pressure from the strength of the dollar, but the real recovered
Currencies in the region fell under pressure from the strength of the dollar, but the real recovered

The Brazilian real appreciated 0.1%, to 5.4406 units per dollar, after the successful placement of a government bond for 2,000 million dollars in international markets. The real had reached its lowest value in almost two years in the previous session. In Brazil, the week was marked by President Luiz Inácio Lula da Silva’s criticism of the Central Bank’s monetary policy, which maintained its reference interest rate at 10.5%.

The Mexican peso recovered from the sharp declines recorded after the June 2 elections, preparing to close its first week of gains in more than a month, while other Latin American currencies continued to be pressured by the persistent strength of the dollar.

The Mexican currency, which has lost more than 7% since the elections in which the ruling Morena party expanded its legislative majority, gained ground thanks to the first appointments of the new president, Claudia Sheinbaum, reassuring analysts and operators.

CIBanco noted in an analysis report that the Mexican exchange market seems to have achieved some stability, although probably temporary, after episodes of risk aversion derived from the internal elections. In international markets, The dollar hit an eight-week high against the yen and the dollar index rose 0.19% to 105.64 as the Federal Reserve’s wait-and-see approach increasingly contrasts with other banks’ monetary easing. central.

Market data

Business activity in the United States reached its highest level in 26 months in June, thanks to a rebound in employment, while price pressures eased considerably, reinforcing expectations of a slowdown in inflation.

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100 US dollar bill.

In Colombia, the peso depreciated 0.44%, to 4,146.45 per dollar, and the COLCAP stock index fell 0.62%, to 1,367.43 units, after the rejection in Congress of a government project to prohibit oil production through fracking. Analysts consulted by Reuters anticipate that the Colombian monetary authority will reduce the interest rate to 11.25% at the end of the month, being the fifth cut since the beginning of monetary relaxation in December.

The Chilean currency weakened 0.98%, to 941.09 pesos per dollar, pressured by a sharp drop in the price of copper and closing the week with losses. The main index of the Chilean stock market, the IPSA, fell 1.18%, to 6,511.81 points. The Peruvian currency, the sol, fell 0.06%, to 3.7914 units per dollar, while the Lima Stock Exchange index fell 0.27%, to 770.23 points. Argentine markets closed for the holiday.

Source: Ambito

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