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Snapshot: Local Currencies Give In To Weak Equities and Surging Greenback

LATAM
  • Eventually local currencies give in to equity weakness and the surging greenback. BRL, COP and MXN leading the regional losses. Local equity indices hit hard in tandem with US benchmarks. Swap rates also seen higher across the board with Brazil's DI curve shifting higher by between 17-24 basis points:
    • USDMXN up 0.83% at 20.126
    • USDBRL up 1.43% at 5.2949
    • USDCLP up 0.63% at 707.33
    • USDCOP up 1.03% at 3747.06
    • USDPEN up 0.31% at 3.7188
    • Bbg Dollar Index up 0.62% at 1126.08
    • JPMorgan EM Ccy Index down 0.52% at 57.298
    • S&P E-Mini Future down 70.5 points (-1.7%) at 4074.25
    • US 10-Yr yield is up 6.6 bps at 1.688%
  • Local Equity Indices:
    • Brazil Ibovespa down 2724.4 points (-2.22%) at 120267.9
    • Mex Bolsa down 741 points (-1.49%) at 49010
  • Brazil DI Swaps:
    • 2-yr +22 bps at 6.73%
    • 5-yr +23 bps at 8.59%
    • 10-yr +17 bps at 9.33%

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