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Significant USDCLP Strength, Closes In On 2021 High

LATAM FX
  • The halting of Hacienda dollar supply has contributed greatly to CLP weakness in recent sessions and confirmation of no further sales may keep the peso under pressure. Furthermore, headwinds in the form of lower copper prices, falling roughly 5% over the past three sessions and recently breaking below the early November lows have exacerbated the price action.
  • USDCLP has closed the gap significantly to the year's highs at 832.80 ahead of the weekend's presidential election.
  • Broad weakness in local currencies with BRL, COP and PEN all in the red against the greenback.
  • Notable strength in the Mexican peso, however, the clear outlier in the region. USDMXN weakness slightly outpacing Wednesday's decline of broad dollar indices and in direct contrast to overall emerging market currency index losses.
    • USDMXN down 0.42% at 20.6712
    • USDBRL up 0.56% at 5.5286
    • USDCLP up 2.13% at 829.32
    • USDCOP up 0.59% at 3918.43
    • USDPEN up 0.24% at 4.007
    • BBG Dollar Index down 0.14% at 1176.53
    • JPMorgan EM Ccy Index down 0.23% at 54.025
    • WTI Crude Oil (front-month) down $2.74 (-3.39%) at $78.04
    • Copper Futures down 13.9 (-3.19%) at 421.45

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