The region’s currencies have been devalued as the dollar rises globally
The region’s currencies suffered large-scale losses on Tuesday, adding to financial market pressure on the Argentine peso.in the middle global promotion of the dollar and with Market attention was focused on US economic data for clues about future movements in interest rates in the world’s leading economy.
The session was marked by a new decline in the Mexican peso. following the presidential election this weekend. Publication of a report from employment in ADPand on Friday there will be an announcement on non-farm payrolls, data that markets are eagerly awaiting.
“Employments data due this week are extremely important for informing the Fed’s next move on interest rates following weak manufacturing data released yesterday (Monday) that raised doubts about the health of the US economy. », – said the operator.
Meanwhile, US job offers fell more than expected in April. to its lowest level in more than three years, a sign that Labor market conditions are softening in a way that could help the Federal Reserve fight inflation.
In turn, the dollar gained just over 0.1% against a basket of six major currencies. which make up the dollar index, recovering some of the losses incurred the day before.
Colombia’s currency, the peso, led the losses and closed down 1.84% at 3,936.70 to the dollar. while in the stock market, the benchmark MSCI COLCAP index rose 0.29% to 1,404.04 points after a holiday that kept markets closed on Monday.
In its turn, The Mexican peso continued its heavy losses from the previous day, briefly breaking through the 18-per-dollar barrier. due to investors’ fears that the ruling party’s supermajority at the next Congress will introduce deep constitutional reforms. the national currency was quoted close to closing at 17.8624 units, With depreciation 1.09%, although it had previously weakened to 2010’s 18 pesos, a level not seen since October 2023, after losing 4% the previous day. “The fear remains,” said Gabriela Siller, director of analysis at Banco Base.
The main S&P/BMV IPC stock index, one of the 35 most liquid companies in the Mexican market, rose 3.24% to 53,485.62, regaining some of the ground lost the day before when it suffered its worst fall since March 2020. The stock market fell more than 6% on Monday after news of Claudia Sheinbaum’s overwhelming victory in Sunday’s presidential election and that her Morena party and its allies are poised to dominate Congress.
In turn, the Brazilian real depreciated by 0.96% to 5.2851 units per dollar. amid falling commodity prices and market discomfort with the fiscal scenario in Brazil. Meanwhile, the Bovespa index of the B3 stock market in Sao Paulo lost 0.19% to 121,802.06 points, its fifth straight session of losses, under pressure from miners Vale and Petrobras due to lower commodity costs. .
Brazil’s economy rebounded in the first quarter after a sluggish second half of 2023, boosted by rising private investment and household demand amid a strong labor market, official data showed on Tuesday.
External markets were in the red on evidence that The “exceptionalism” of the US economy may be beginning to fade as manufacturing activity weakens.
The Chilean peso lost a slight 0.04% to 904.20/904.50 per dollar., on a day of high volatility. Meanwhile, the leading Santiago stock exchange index IPSA fell 0.24% to 6,598.36 points.
The Peruvian sol currency depreciated 0.51% to 3.744/3.748 per dollar.. Meanwhile, the Lima Stock Exchange index fell 2.19% to 770.05 points.