Latin American currencies are affected by the strengthening of the dollar
Most currencies in the countries suffered losses.
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Faced with an economic scenario that is moving towards what seems to be an inevitable global recession, many investors continue to accumulate dollars seeking to have the least possible losses, transactions that, according to experts, have generated a 10% increase in the U.S. dollar throughout this year.
In this sense, the Reuters agency also pointed out that the recent strengthening of the dollar in the world market is due to aggressive increases in interest rates in the United States, supported by statements by various officials of the Federal Reserve (Fed).
"That has been clear in recent days: When there is volatility and when there is uncertainty, there is a migration to the U.S. dollar," Kristina Hooper, Chief Global Market strategist at Invesco, told CNN.
Although the increase in interest rates has made investments in the U.S. more attractive, since they offer higher yields, it is necessary to take into account that half of international trade is invoiced in dollars, which increases the expenses of manufacturers and limits the profits of small businesses that depend on imported products.
Likewise, the trend is negative for the different governments that must pay their debts in dollars while their reserves are depleted.
Last Thursday, the dollar index, which measures this coin against several currencies, closed with an increase of 1.2% in its second consecutive day of growth.
This is how the Latin American currencies behaved against the dollar:
- Colombian peso was the most devalued currency on Thursday, October 6, which ended with losses of 0.68%. The dollar closed at an average of $4,672, a historical value in the foreign exchange market.
- The Brazilian real depreciated 0.50% on Thursday, reaching 5.22 units per dollar.
- The Peruvian sol lost 0.28% and the dollar closed this Thursday at 3.9 soles.
- The Argentine peso closed at 149.18 pesos per dollar, a drop of 0.19% at the close of this Thursday.
- The Mexican peso closed at 20.1282 in the market this Thursday, a decline of 0.38% compared to the price of the previous day.
- The Chilean peso had a marginal decrease of 0.03%, and the price of the peso was quoted at 942 units per dollar.
For its part, this was the performance of other of the most powerful currencies in the world:
- The pound sterling approached its lowest level of the week registering a sharp fall of 1.1170 pounds per dollar.
- The euro sank to its lowest level since Monday at $0.98005 per euro.
- The Japanese yen had a new low and was above 145 yen per dollar on Friday night.