0 Min, 0 Min, 0 Min, 0 Min, 0 Min * The Colombian peso falls 1.4 percent as oil prices fall * The Chilean constitution is being drafted (Updates prices after Fed minutes,)
Susan Mathew and Ambar Warrick
Reuters, 7 July – Following the release of minutes from the Federal Reserve’s most recent meeting, Latin American currencies pared some of their session losses on Wednesday, although falling oil prices sent Colombia’s peso to two-month lows.
The real in Brazil was down 0.4 percent after falling as much as 1.6 percent earlier in the day to a one-month low, while the peso in Mexico erased all of its losses.
The peso of Chile has recovered after losing as much as 1.3 percent due to rising copper prices. It was down 0.5 percent at the time of writing.
Last month, Federal Reserve policymakers judged that substantial further progress on the economic recovery “had yet to be realized,” but that the country as a whole needed to be ready to act if such threats materialized.
“It wasn’t a significant shift. I don’t think there are any major implications from this, other than the fact that they’ll start talking about tapering at the next meeting, which isn’t surprising “senior fixed income strategist at Sterling Capital Management in Jupiter, Florida, Andrew Richman.
Emerging market currencies had taken a knock following the Fed’s most recent meeting, when the central bank sounded unusually aggressive. Fears of a faster-than-expected tapering brought back memories of the 2013 crash, while potentially higher US interest rates reduce the interest rate differential that makes emerging market currencies appealing.
The Colombian peso fell 1.4 percent to 3,828 pesos to the dollar. Oil prices fell as investors worried that the breakdown in OPEC+ talks earlier this week meant more supply, not less, was on the way.
Anti-government demonstrations, the coronavirus outbreak, and a second credit rating drop have dragged the oil-exporting Andean currency down about 11% this year, despite a 40% increase in crude prices.
All eyes in Chile are focused on the crafting of a new constitution. Delegates chose a lady from Chile’s indigenous Mapuche people to lead them through the procedure on Sunday.
Thousands of Peruvians came to the streets on Tuesday to protest the uncertainty surrounding the outcome of the presidential election a month ago, extending the sol’s losses to a fifth straight day.
According to sources, socialist Pedro Castillo, who is poised to be confirmed as Peru’s next president, is putting together a “hybrid” Cabinet of technocrats and political friends, with a moderate in the running for the economy ministry. A key adviser told Reuters that he expects mining companies to accept ‘prudent’ tax reforms.
The majority of Latin American stock indexes climbed, with Brazil’s Bovespa recovering from two-month lows.
Stock indices and currencies in Latin America: Stock indices The most recent daily percent change
MSCI Emerging Markets 1340.19 -0.47 MSCI Emerging Markets 1340.19 -0.47 MSCI Emerging Markets 13
MSCI Latin America 2540.62 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.65 0.
Brazil’s Bovespa index is 127051.43 1.56.
Mexico IPC 50066.32 0.03 Mexico IPC 50066.32 0.03 Mexico IPC 50066.32
IPSA 4174.43 0.21 Chile IPSA 4174.43 0.21 Chile IPSA 4174.43 0.
Argentina MerVal 63014.96 -0.862 Argentina MerVal 63014.96 -0.862 Argentina MerVal 63014.
COLCAP 1286.56 1.14 COLCAP 1286.56 1.14 COLCAP 1286.56 1.14
Brazil real 5.2298 -0.38 Brazil real 5.2298 -0.38 Brazil real 5.2298 -0.38 Brazil real 5.2298 -0.38 Brazil real 5.
Mexico’s peso is 19.9485 0.31 dollars.
750 pesos (-0.47%) Chilean peso
Colombian peso 3828 (-1.37 USD)
3.9495 -0.21 Peru sol
Argentina’s currency fell by 0.02 percent to 95.9400 pesos (interbank)
(Ambar Warrick contributed reporting; Jonathan Oatis and Andrea Ricci edited the piece.)/n
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