Snapshot: USD Strength Gradually Filters Through To LatAm FX

Hawkishly perceived Copom minutes prompt relief in the local currency but provides further headwinds for the local swaps curve that shifts higher between 5-17 basis points. Tumbling oil prices leading the pessimistic risk sentiment in markets. US dollar strength mostly seen against commodity tied currencies in the G10 space, gradually filtering through to equities and Latam FX with MXN, CLP and COP all down a little under 1% on the day:

• USDMXN up 0.78% at 20.7403
• USDBRL down 0.29% at 5.4917
• USDCLP up 0.9% at 723.17
• USDCOP up 0.77% at 3579.04
• USDPEN up 0.21% at 3.7209
• Bloomberg Dollar Index up 0.55% at 1145.55
• USDCNH up 0.15% at 6.5172
• JPMorgan EM Ccy Index down 0.5% at 56.458
• WTI Crude Oil (front-month) down $3.94 (-6.4%) at $57.62

Local Equity Indices:

• Brazil Ibovespa down 735.2 points (-0.64%) at 114231.3
• Mex Bolsa down 522 points (-1.1%) at 46825