# Latam FX rises against softer dollar, Vale weighs on Brazil's Bovespa

> Latin American currencies rose against a weaker dollar ahead of the Federal Reserve's rate decision, with Chile's peso up 0.3% and Mexico's peso up 0.5%. Brazilian stocks fell sharply, led by losses at miner Vale. Investors were pricing a 25 basis point Fed hike and betting on an end to rate increases soon.

- Date: 2023-02-01 · published 2023-02-01T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/37614-latam-fx-rises-against-softer-dollar-vale-weighs-on-brazil-s-bovespa
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A softer dollar tends to support Latin American currencies, which can make Brazilian and Argentine soybean and corn exports less competitive in dollar terms and weigh on export prices. The effect on feed markets is limited and indirect.

## Read by commodity

- DXY: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 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% | +0.3% |
| DXY | 2020-07-27 | [Yen rises against weaker dollar](https://feedsoft.ai/events/52345-yen-rises-against-weaker-dollar.md) | -0.8% | -0.9% |
| DXY | 2022-12-14 | [Ringgit ends higher against US dollar on softer US CPI data](https://feedsoft.ai/events/38498-ringgit-ends-higher-against-us-dollar-on-softer-us-cpi-data.md) | +0.2% | -2.0% |
| DXY | 2025-05-30 | [FX Daily: Softer US spending weighs on the dollar \| ING THINK](https://feedsoft.ai/events/24860-fx-daily-softer-us-spending-weighs-on-the-dollar-ing-think.md) | -0.5% | -1.6% |
| DXY | 2026-07-30 | [Gold rises on weaker U.S. dollar, soft inflation data](https://feedsoft.ai/events/18260-gold-rises-on-weaker-u-s-dollar-soft-inflation-data.md) | -1.2% | -1.9% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam/emerging-markets-latam-fx-rises-against-softer-dollar-vale-weighs-on-brazils-bovespa-idINL4N34H30W/

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