By, 0 Min Read * Latam’s lowest performer this week due to political issues
* Goldman Sachs expects Colombia to be downgraded to junk status.
Sachs
* The greatest weekly performance in Peru is the sol, which is up 1.9 percent.
(Updates prices and adds details)
Ambar Warrick and Susan Mathew
The majority of Latin American currencies climbed on July 2nd, according to Reuters.
The dollar fell on Friday as the unemployment rate in the United States rose.
Colombian assets, on the other hand, were engulfed in a second round of volatility.
The rating has been downgraded to junk.
The Brazilian real increased by 0.1 percent against the US dollar.
Mexico’s peso increased by more than 1%. Chile’s currency is the peso.
The price increased by 1%.
The peso of Colombia fluctuated between gains and losses.
After hitting a two-month low, the stock was trading 0.2 percent higher at 1819 GMT.
earlier.
Colombian dollar bonds have dropped half a cent to a new low.
Fitch joined S&P in cutting Colombia’s credit rating, bringing it to a one-month low.
Foreign and domestic long-term credit ratings have been downgraded to junk due to deterioration.
finances of the state
Investors’ demand for a premium to hold Colombia’s debt.
above the safe refuge of the United States Treasuries increased by 6 basis points.
The rate has risen to 256 basis points, its highest level since early October.
The JPMorgan EMBI index revealed.
“Fitch’s rating action was significant to a large extent.”
Given the recent budgetary, political, and economic events, this was both expected and warranted.
and social changes,” Goldman Sachs analysts noted in a recent report.
note. “Moody’s is anticipated to offer a rating downgrade in the near future.”
“In the near future.”
The rating comes as social instability in the country grows.
country in recent months, as well as concerns over fiscal policy
due to the COVID-19 pandemic’s strength Colombian stocks are on the rise.
after plunging as much as 0.9 percent, were trading 1.7 percent higher.
The dollar sank as investors shifted their attention to a rising stock market.
Despite June payrolls, the unemployment rate in the United States remains high.
The increase was greater than anticipated. The mixed data is likely to reduce the impact.
prospects of the Federal Reserve tightening policy, which
Emerging markets gain.
The real was expected to lag its rivals in Brazil this year.
With a 2% loss this week,
Brazil’s industrial output increased in May, according to data, although
A Reuters poll prediction was incorrect.
Meanwhile, the leader of the lower House has stated that there is no such thing as a government shutdown.
impeachment proceedings against him on a political level
Jair Bolsonaro, the president of Brazil, is facing mounting pressure to resign.
ouster.
Bolsonaro has stated that he will run for president next year.
If there is any fraud, I would not hand over power. In the weeks leading up to
The real is expected to depreciate to 5.10 by the end of the year.
According to a Reuters poll, the year 2021 is the most likely. A hawkish central bank has maintained its hawkish stance.
So far this year, the carry trade value has been appealing.
Peru’s sol was Latam’s greatest weekly performer.
Despite the currency’s volatility, it increased by 1.9 percent.
awaiting more information on the country’s fiercely contested presidential election
Elections for the presidency.
The following are some of the most important Latin American stock indexes and currencies:
The most recent daily percent change
Emerging Markets 1357.53 -0.78 MSCI Emerging Markets
MSCI LatAm 2625.43 0.98 MSCI LatAm 2625.43 0.98 MSCI LatAm 2625
Brazil’s Bovespa index is currently trading at 127565.26 1.51.
Mexico IPC 50245.19 -0.26 Mexico IPC 50245.19 -0.26 Mexico IPC 50245.19
IPSA 4329.99 -0.36 Chile IPSA 4329.99 -0.36 Chile IPSA 4329.99 –
Argentina MerVal 63190.69 1.822 Argentina MerVal 63190.69 1.822 Argentina MerVal 63190.
COLCAP 1281.13 1.64 Currencies Daily percent change
Brazil’s real was 5.0390 0.08 at the time of writing.
Mexico’s peso is currently valued at 19.7631 1.13 USD.
733.94 pesos
3770 0.16 pesos Colombian peso
3.8974 -0.98 Peruvian sol
Argentina’s peso is now trading at 95.7900 -0.02.
(interbank)
(In Bengaluru, Susan Mathew and Ambar Warrick contributed reporting.)
Leslie Adler edited the piece.)/n
