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USDBRL Seen 1% Lower As Markets Prepare For Selic Rate Decision

LATAM FX
  • The small reversal in US yields following the refunding announcement has prompted some strength in local currencies versus the dollar. Markets appear to be lacking momentum for any meaningful follow through.
    • USDMXN made new lows on the day at 20.1706, however, remains in a fairly tight daily range.
    • BRL is the main outperformer as USDBRL trades back below 5.40, down 0.95% on the session. Added tailwind of the expected rate hike this evening with potentially more to come down the line.
    • USDCLP also trade briefly back below 699 and remains 0.15% lower for Wednesday.

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