The Mexican and Chilean pesos are among the worst performing currencies in the region

LIMA – The US dollar index rebounded globally on Monday, sending most currencies – including G10 currencies – lower. Latin American currencies were no exception: practically all of them registered lower relative to the dollar at the end of the day, according to the data I collected. bloomberg.

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The US currency halted its slide in recent days as investors regained their appetite for risk and liquidated their long dollar positions. Traders pay attention to Friday’s report on US Producer Prices, one of the final pieces of data that Federal Reserve (FED) officials will review ahead of the December 13-14 monetary policy meeting.

Most analysts expect the Fed to raise interest rates by an average of 50 basis points, closing the year with a less sharp increase than expected a few months ago. While the data has been confirmed, financial markets are expected to remain volatile.

Latin American currencies fell

With the Bloomberg Spot Dollar Index up 0.8% at the close of the sessionEmerging countries’ currencies generally experienced downward pressure. Among the hardest hit, some Latin American currencies stood out. Compared to last Friday’s session, the Mexican and Chilean pesos this Monday were the worst performers in the emerging ranking.with decreases of 1.69% and 1.43%, respectively.

The third and fourth worst performing currencies among emerging countries were the Colombian peso (-1.34%) and the Brazilian real (-1.23%). Respectively, following the step of the currencies of Chile and Mexico.

Among the data that has affected Latin American currencies since last Friday is the outlook for the US labor market, which looked more positive than expected in November. 263,000 jobs were added, while the analyst consensus predicted only 200,000 new jobs. Such strength could give the Fed room to make further rate hikes or to maintain its monetary tightening policy.

The wholesale Argentine Peso (-0.63%), Peruvian Sol (-0.49%) and Uruguayan Peso (-0.09%) also depreciated less. The Uruguayan Peso remains the best performing currency so far in 2022 in Latin America.

💸 dollar today

💸 Coin ranking so far in 2022

The Mexican peso remains behind the Brazilian real in the ranking of currencies of emerging countries and Latin America, measured against the US dollar. Meanwhile, the official Argentine peso is close to declining 40% against the dollar so far in 2022.

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