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BBDXY Turnaround Caps Latam FX

LATAM FX

Broad Dollar strength prompted by rising US long end yields, evident from a strong turnaround in the Bloomberg Dollar Index which has turned positive on the session has capped Latam FX gains for now. Worth noting some potential USD demand as we approach corporate value date month end.


  • MXN - To note some expiries for Feb24 NY cut 1000ET (Source DTCC): *USD/MXN: Mxn20.50($714mln), Mxn20.64-65($556mln)
  • BRL - USDBRL after initial weakness has traded back to just shy of yesterdays close at 5.4415
  • CLP - A new most recent low below 700 at 699.19 was enough to potentially prompt some profit taking with a solid bounce back to best levels of the session nearer to 705.

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