Currency and stock markets in Latin America rose on Monday, supported by increased investor appetite for risky assets that led to a global decline in the dollar, as concerns eased over the possibility of a significant increase in interest rates from the United States.
The euro settled at a one-week high, benefiting from a weaker dollar after several Federal Reserve officials indicated they were not in favor of an acceleration of rate hikes.
Comments late last week lifted the dollar from two-decade highs and boosted global stocks and non-US currencies, especially the euro. The mood was also generally helped by signs of Chinese stimulus support.
The dollar index, which compares the greenback against a basket of six major currencies, is down 0.7% and is off the two-decade highs it touched last week.
Gains led the Chilean peso, which rose 3.09% to 940.70 / 941.00 units per dollar, driven by the start of the central bank intervention that will inject $25,000 million into the market between July 18. and September 30th.
Meanwhile, the main index of the Santiago Stock Exchange, IPSA, rose 0.92% to 4139.93 units.
The Central Bank of Chile announced on Thursday its agreement to intervene in the foreign exchange market to prevent possible distortions due to the strong appreciation of the US currency in recent weeks, which brought the peso to a historical low of 1045.80 / 1046.10 units per dollar. ..
Similarly, the Colombian peso strengthened 1.12% to 4,310 units per dollar, although it managed to rise to 1.51% in the first minutes of the market. In the stock market, the MSCI COLCAP index rose 0.63% to 1282.26 points.
The Mexican peso traded at 20.3930 to the dollar, up 0.63% against the Reuters reference rate on Friday, in an environment marked by low risk aversion and a weak dollar, after disappointing inflation figures published last week in the United States. States.
The peso’s appreciation comes after the market on Friday began reducing its speculation about the future of monetary policy in the United States, after many Federal Reserve officials avoided noting the possibility of a 100 basis point interest rate increase, Banco Base noted.
The main stock index S&P/BMV IPC, which includes the 35 most liquid companies in the Mexican market, rose 0.39% to 47,263.09 units, as investors waited for the publication of corporate results corresponding to the second quarter and the upcoming monetary policy decision. European Central Bank.
Monks said the market is closely following the corporate reporting season, as corporate results in the financial and technology sector stand out this week.
The Brazilian real rose 0.96% to 5.3575 units per dollar, while the Bovespa Index of the B3 Stock Exchange in Sao Paulo rose 1.43% to 97929.04 points. In Argentina, the peso fell 0.52% to 128.91 units per dollar in a decline regulated by the central bank, while the Merval stock index rose 1.98% to 106,291.15 units, supported by an improving external climate and domestic hedging in the face of rising inflation and exchange. pressure rate.
Argentina’s new Economy Minister, Silvina Batakis, recently stated that she is seeking to reduce high fiscal deficits and fight inflation in an effort to calm financial markets.
Peru’s currency, the sol, gained 0.51% to 3.865/3.885 per dollar. While the Lima Stock Exchange reference added 1.61% to 467.34 points.
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