Opinion polls predict a close race with a uncertain ending between Democratic candidate Kamala Harris and former Republican President Donald Trump, which casts a cloud of uncertainty over the outcome and subsequent unrest in global markets.
The focus was also on the US Federal Reserve monetary policy meetings, the result of which will be announced on Thursday, along with the comments of the president of the entity, Jerome Powell.
According to CME’s FedWatch tool, markets widely expect a reduction of a quarter of a percentage point, which would mark the second rate reduction of the year in the United States after the unusual 50 basis point cut that the Fed applied in September.
Meanwhile, The US currency fell around 0.3% against a basket of six main currencies that make up the dollar index.
The Mexican peso depreciated more strongly than other global reference currencies due to investor caution, while the United States elections were taking place, amid fears of a potential return to power of former President Donald Trump.
The currency was trading at 20.3530 per dollar, a level not seen since September 2022, with a loss of 1.3%. “This movement that we are observing mainly has to do with this possible return of Trump to the presidency of the United States,” said Eduardo Ramos, senior market analyst at digital broker VT Markets Latam. “The market is very expectant,” he added.
For a few weeks now, the peso has been experiencing erratic trading, hit by concerns about an eventual victory of the Republican candidate, who has repeatedly threatened to punish various products with tariffs, including Mexican cars.
For its part, The Brazilian real lost a slight 0.1% to 5.7909 units per dollar, also attentive to announcements about containment of public spending at the local level, while the Bovespa index of the Sao Paulo B3 stock market fell 0.21%, to 130,235.89 points.
Brazil’s presidential chief of staff, Rui Costa, will meet on Tuesday with the ministers of Social Security and Social Development to advance discussions on new fiscal measures to control expenses, his office reported in a statement.
Meanwhile, the Chilean peso fell 0.3%, to 957.47 per dollar. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, fell 0.12%, to 6,621.73 units.
In turn, the Colombian peso fell 0.2% to 4,427.10 units per dollar, which represents its seventh decline in a row after a local holiday. On the stock market, the MSCI COLCAP stock index rose 0.12% to 1,354.46 points.
Finally, the Peruvian currency, the sol, was trading stable at 3,769/3,774 units per dollar. Meanwhile, the Lima Stock Exchange benchmark improved 0.49% to 806.70 points.
Source: Ambito
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