Latin American currencies rise, the dollar falls in international markets

Most of the currencies of Latin America rose on Tuesday, in a context of the decline of the dollar in international markets, after figures from the United States economy that reinforced expectations of a slowdown in the tightening of monetary policy in the first economy of the world.

US producer prices rose less than expected in October, further evidence that inflation was starting to ease.

Government data last week showed consumer prices rose less than expected in October, pushing the annual rise below 8% for the first time in eight months. Inflation is slowing as higher interest rates reduce demand and supply chains pick up.

The dollar index, which compares the currency against a basket of six currencies, fell about 0.9%.

The Mexican peso was trading at 19.2830 per dollar, with a gain of 0.30% against the Reuters reference price on Monday, with investors paying attention to economic figures in the United States, which will give clues about the next steps of the major central banks.

The Mexican peso follows the trend of Monday, when it was the currency that posted the biggest gains against the dollar thanks to encouraging economic data in the United States, which point to an easing of monetary policy, Monex said.

The main stock index S&P/BMV IPC, which includes the 35 most liquid companies in the Mexican market, rose 0.54% to 52,056.78 units.

In Argentina, the peso fell 0.26% to 162.20 per dollar, a depreciation regulated by the central bank, while the Merval stock index climbed 1.28% to 154,635.84 units, after The Government formalized a new exchange of currencies with China at a time when the reserves of the central bank (BCRA) are staggering.

Traders await inflation data for October that will be officially reported this afternoon.

The Chilean peso rose 0.11% to 893.40/893.70 units per dollar. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, fell 1.14%, to 5,242.28 points.

“The possibility of a relaxation on the part of the Fed in its rate hikes gave a certain amount of optimism that is reflected in the behavior of the currencies, but the situation continues to be very uncertain and changeable, which also explains the high volatility in the markets “said an operator.

The Colombian peso opened with an increase of 0.72%, 4,770 units per dollar, while the reference index of the stock market, the MSCI COLCAP, rose 0.04% to 1,267.04 points.

The Peruvian currency, the sol, strengthened 0.62% to 3.823/3.826 units per dollar. Meanwhile, the benchmark of the Lima Stock Exchange fell 0.26%, to 589.15 points.

Brazilian markets remained closed on Tuesday due to a local holiday.

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