# Latam FX at 5-year high as dollar dips ahead of U.S. inflation data | Financial Post

> Latin American currencies reached their highest level since 2018 on Tuesday, as the dollar slipped ahead of US inflation data. The MSCI Latin American currencies index rose 1.1%, and the Brazilian real gained 1.3% to its strongest level in over two months. The Chilean peso also rose as copper prices improved.

- Date: 2023-04-11 · published 2023-04-11T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/36626-latam-fx-at-5-year-high-as-dollar-dips-ahead-of-u-s-inflation-data-financial
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A softer dollar and firmer regional currencies can ease import costs for Latin American feed buyers and slow farmer selling of Brazilian exports. The move reflects broad dollar weakness ahead of the US inflation report and Fed policy expectations.

## Read by commodity

- DXY: bearish ▼
- USDBRL: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-09-12 | [Latam currencies rally as dollar weakens ahead of U.S. inflation data](https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data.md) | +2.6% | +1.2% |
| USDBRL | 2023-04-20 | [Latam FX higher against soft dollar, Brazil real snaps 3-day losing streak \| Financial Post](https://feedsoft.ai/events/36623-latam-fx-higher-against-soft-dollar-brazil-real-snaps-3-day-losing-streak.md) | -0.0% | -2.2% |
| USDBRL | 2021-06-24 | [Latam FX cheers weak U.S. data; Mexican central bank awaited \| Financial Post](https://feedsoft.ai/events/46802-latam-fx-cheers-weak-u-s-data-mexican-central-bank-awaited-financial-post.md) | +1.1% | +5.2% |
| USDBRL | 2021-11-08 | [Brazil's real dips on inflation woes, Chile's peso supported by copper \| Financial Post](https://feedsoft.ai/events/44258-brazil-s-real-dips-on-inflation-woes-chile-s-peso-supported-by-copper-financial.md) | -1.4% | +1.7% |
| USDBRL | 2021-12-08 | [Brazil's real rallies over 1% ahead of interest rate decision \| Financial Post](https://feedsoft.ai/events/43829-brazil-s-real-rallies-over-1-ahead-of-interest-rate-decision-financial-post.md) | +0.7% | +1.3% |
| DXY | 2022-09-12 | [Latam currencies rally as dollar weakens ahead of U.S. inflation data](https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data.md) | +0.9% | +2.8% |
| DXY | 2022-09-09 | [Dollar slides as investors balance positions ahead of U.S. inflation data \| Reuters](https://feedsoft.ai/events/39800-dollar-slides-as-investors-balance-positions-ahead-of-u-s-inflation-data-reuters.md) | +0.2% | +2.1% |
| DXY | 2023-01-10 | [Dollar treads water near 7-month lows ahead of U.S. inflation data](https://feedsoft.ai/events/37697-dollar-treads-water-near-7-month-lows-ahead-of-u-s-inflation-data.md) | -0.8% | +0.2% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/latam-fx-at-5-year-high-as-dollar-dips-ahead-of-u-s-inflation-data

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.