Latin American currencies fall against the dollar due to risk aversion

The currencies of Latin America closed this Tuesday in negative terrain, due to a greater appetite for dollars from investors, who took refuge in the greenback due to growing concerns about the global economy.

The US currency hit its highest level in three weeks in the session, after weak global economic data revived fears of a global recession.

“Investors are looking for the safety of the US currency amid widespread uncertainty,” said Ricardo Evangelista, senior analyst at ActivTrades.

“This dynamic is compounded by the prospect of the Federal Reserve continuing its aggressive monetary tightening as its push to control inflation remains central to the bank’s strategy, further increasing the attractiveness of the dollar,” he added. .

The falls were led by the Colombian peso, which depreciated 2.23% to 4,255 units per dollar.

In Brazil, the real fell 0.95%, and in Mexico the peso fell 0.41% to 19.9051 units per dollar.

The Chilean peso closed down 0.42%, at 884.50/884.80 units per dollar, and the Argentine peso lost 0.55% to 135.34 units per dollar.

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