The commercial war between the US and the world generates an expectation of falling in the value of the dollar globally. Faced with that situation, in the market they fear a “coin warfare.”
Regional coins devalued significantly on Tuesday, April 8thus adding more pressure on the price of the dollar in Argentina. The Real Brazilian headed depreciation, in the midst of an escalation in the commercial war between the US and China.
The currency of the main South American economy lost 1.6% and reached 6.01 units per dollar. In the same tuning they also operated the Colombian weight (-0.9%), the Peruvian (-0.8%) and the Chilean (-1.1%), while the Mexican quoted stable.
It is worth remembering that the tariff boom arranged by the president of the USA, Donald Trump, generates an expectation of falling in the value of the dollar globally. Consequently, analysts warn about a possible “War of coins” since the rest of the countries can try to seek their respective currencies to compensate for the loss of competitiveness in this context.
The market expects the Fed rate to fall. In that frame, MIn most countries try to negotiate with the USA a truce in the tariff war, it is also feasible that they release to some degree the intervention on exchange markets.
The real bilateral exchange rate with Brazil showed at the end of last week a level of appreciation higher than the average of the last two months and played minimum of one month. Last December the indicator came to play minimum since the end of 2001and then rebound from the appreciation in the currency of the neighboring country.
In the National Bank of Argentina the Real was negotiated at $ 194.40 for sale. The Real Blue quoted at $ 240.75, while The real card, which is used for purchases abroad, presented a value of $ 252.72.
Source: Ambito
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