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Emerging Markets – Currencies magnify losses as the dollar recovers

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By Susan Matthews 25 Nov (Reuters) – Most emerging market currencies fell on Friday as the US dollar recovered some lost ground, while the Mexican peso rose after data showed the economy expanded in the third quarter. The MSCI index of emerging market currencies almost offset all of its gains for the week, falling 0.3% on Friday as the dollar rose 0.3%. The dollar broke a three-day losing streak prompted by rhetoric from members of the US Federal Reserve and minutes from the November meeting that showed the central bank’s intention to slow the pace of interest rate hikes. Is. While the currencies of most emerging markets fell, those of Colombia and Mexico strengthened. Data released Friday showed that Mexico’s economy grew 0.9% in the third quarter over the previous three-month period, driven primarily by the primary sector and despite an aggressive monetary tightening cycle. However, the figure was slightly below expectations of 1% growth according to a Reuters poll. Peru’s sol fell 0.2% after left-wing Peruvian President Pedro Castillo accepted the resignation of its prime minister, Anibal Torres, saying he would reshuffle his cabinet amid a protracted battle between the executive and legislative branches of the government . Strategists at JP Morgan said earlier this week that the potential impact of political risks in Peru would prove to be more limited on markets than in 2021. Brazil’s real lead in LATAM fell but would end the week on a positive note after two weeks of losses in the face of fiscal uncertainty due to incoming government plans. Brazil’s current account deficit came in slightly lower than expected in October, central bank data showed on Friday, thanks to an improving trade balance surplus and a significant drop in remittances of earnings and dividends. Sao Paulo shares fell 1.4%, with oil giant Petrobras the biggest loser. The first meeting of the government’s transition team with Petrobras Chief Executive Caio Paes de Andrade is scheduled for Monday. President-elect Luiz Inácio Lula da Silva was expected to decide in early December who would become Petrobras’ next CEO. In Chile, nearly 2,000 workers at the Escondida mine, the world’s largest copper deposit, have rejected BHP’s offer to settle a labor dispute and may stop working on Nov. 28, their union said on Thursday. The Chilean peso fell 1%. Major Latin American Stock Indices and Currencies: Stock Indices Last Daily % Change MSCI Emerging Markets 940.40 -0.55 MSCI LatAm 2170.72 -1.86 Brazil Bovespa 110310.49 -1.36 Mexico IPC 51720.56 -0.5 Chile IPSA 5244.79 -0.55 Argentina MerVal 162848.821AP.18 Colombia Latest Currencies Daily % Change Brazilian Real 5.3713 -1.17 Mexican Peso 19.3528 0.07 Chilean Peso 917.1 -0.75 Colombian Peso 4878, 51 0.54 Peruvian Sol 3.8697 -0.77 Argentine Peso 165.5600 -0.18 (Interbank)

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Source: news.google.com

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