gear – Turmoil in the global banking sector slowed after the completion of the sale of Credit Suisse to UBS, It is a measure that is still being analyzed by investors, but it was considered good news in the midst of a possible crisis in the financial sector that could generate more problems in the future. behind this scenario The dollar index fell 0.4% and emerging market indices and Latin American currencies continued to gain.
Markets are preparing for the decision the Fed will make on Wednesday regarding US interest rates, but the biggest possibility now seen in the environment is that the Fed will not move rates to avoid further pressure in the US. American financial system.
The decision the Fed will make will affect the markets and it will have to consider the recent closure of operations of some regional banks in the US, cIn the case of Silicon Valley Bank as one of the most sought-after banks in the world.
On the other side, bloomberg I mentioned that the question some operators have been asking in recent days is whether the US monetary authorities can begin to cut interest rates in the short term, due to the effect of the increases on the financial system on that date.
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The Brazilian truth begins to erase the losses
At the Latin American level, the Brazilian real was the currency that gained and had the best performance among its regional peers, after rising 0.8%, driven by the global decline in the dollar. The appreciation of the Brazilian currency also occurred in a context where the new fiscal framework for the South American country is being discussed, with the Brazilian Budget Council meeting on Tuesday, March 21, to implement these new economic proposals.
The Brazilian real has not had the best of months compared to the performance of the currency against the US dollar throughout 2022. However, If the upward trend continues, the Brazilian real may gradually regain space in the ranking of Latin American currencies.
The Brazilian currency was followed by the Chilean Peso, despite the fact that the fourth-quarter GDP data from the Chilean economy was disappointing on the downside and left open the door to greater risks against the economy of the Andean nation. The Chilean currency was up 0.65% at the end of the day against the dollar, mainly driven by increased risk appetite and higher copper prices globally.
In Latin America, the holidays were celebrated in both Mexico and Colombia, where the Colombian peso was not listed on the official exchange market.
💸 dollar today
💸 Latin American currency ranking so far in 2023
As Latin American currencies rebounded on Monday, the vast majority remain higher compared to the US dollar in the ranking of regional currencies followed by Bloomberg. The Argentine peso is the only Latin American currency to have depreciated so far in 2023, with a decline of 13.4% as of March 20.
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