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Softer Equities Boost US Dollar, Pressuring Local Currencies

LATAM
  • Softer equities throughout the US session boosts US dollar and pressure local currencies. Particular weakness seen in COP and PEN with clear domestic factors in play following the Colombian rating downgrade and the stabilisation of the Castillo lead in the latest Peruvian poll. One-month implied volatility for BRL registered 17.2% yesterday, the highest among 31 major currencies tracked by Bloomberg. 1.14% decline proving the Real's classification as a high-beta asset:
    • USDMXN up 0.61% at 19.987
    • USDBRL up 1.12% at 5.3433
    • USDCOP up 1.46% at 3749.17
    • USDPEN up 0.87% at 3.7473
    • Bloomberg Dollar Index up 0.33% at 1119.6
    • JPMorgan EM Ccy Index down 0.16% at 57.545
    • S&P E-Mini Future down 4 points (-0.1%) at 4150.5
    • Gold is down $3.35 (-0.18%) at $1873.96
  • Local Equity Indices:
    • Brazil Ibovespa down 860.9 points (-0.7%) at 121839.9
    • Mex Bolsa down 421 points (-0.84%) at 49570

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