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BRL Recovers As Renewed US Dollar Selling Caps EMFX Losses, BCB Intervenes

LATAM FX
  • BRAZIL - The announcement of the auctioning and subsequent selling of 20,000 FX swaps was enough to curtail Real losses. New marginal highs were made above 5.53 soon after the open, but the pair struggled to gain traction above 5.50. Renewed US Dollar supply then dominated the price action with the BBDXY plumbing fresh session lows and residing down 0.26%, as of writing. On top of this, a 3% rally in WTI crude futures eased some pressure on the currency.
  • MEXICO - MXN crosses hit some notable support levels and halted the Peso's overnight demise. EURMXN tested the daily downtrend circa 25.30 and has since pared 0.8% of it's gains. Despite a solid recovery the MXN is still finishing today's session with losses of over 1% against both the Euro (-1.41%) and the USD (-1.04%).
  • COLOMBIA - The Colombian Peso also came under pressure, faltering 1.07% to 3597.85.
  • CHILE - USDCLP remained flat on the day continuing it's relative strength to regional peers, amid a continued positive backdrop, including buoyant copper prices and sound vaccine logistical progress.

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