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Latin American currencies

Latam FX surge as ebbing inflation fears boost risk appetite
Markets

Latam FX surge as ebbing inflation fears boost risk appetite

  • Risk appetite got a boost after tepid underlying consumer prices data from the United States on Wednesday eased concerns about a likely surge in inflation from large stimulus packages, which had hammered markets in recent days.
  • Brazil's central bank said it would sell up to $1 billion in currency swaps on Thursday, extending its recent intervention in the foreign exchange market to support the depreciating currency.
Updated 11 Mar, 2021 10:04pm
Brazil's real extends slide on political worries; Mexican peso up over 1pc
Markets

Brazil's real extends slide on political worries; Mexican peso up over 1pc

  • The fear is that, with Lula's specter hanging over his re-election, Bolsonaro could act even more erratically and take populist actions that compromise Brazil's fragile fiscal situation.
  • With US Treasury yields stabilizing and Wall Street's stock indexes opening higher, Sao Paulo's Bovespa stock index rose 0.2%, after sinking 4% on Monday.
Updated 09 Mar, 2021 09:33pm
Latam currencies rise as bonds stabilize, commodity prices rise
Markets

Latam currencies rise as bonds stabilize, commodity prices rise

  • Brazil's real rose 0.5% against a stronger dollar. A survey on Monday showed the pace of expansion in the country's manufacturing sector picked up again in February after three months of deceleration.
  • MXN bonds were the most sensitive during the 2013 & 2016 yields spikes and will likely be hit relatively more as US yields rise.
Published 01 Mar, 2021 08:29pm
Mexican peso drops 1pc as rally in dollar, US bond yields weigh
Markets

Mexican peso drops 1pc as rally in dollar, US bond yields weigh

  • The peso weakened 1%, with markets also keeping an eye on manufacturing hit by a deep freeze in Texas.
  • The dimension of the effects at the national level can be significant for the industry, as it comes at a time when the (Mexican) economy is just starting to recover.
Published 17 Feb, 2021 07:47pm