# Latam currencies rally as dollar weakens ahead of U.S. inflation data

> Most Latin American currencies rallied on Monday, with Brazil's real up 1.2% and the Mexican peso reaching its strongest level since June 10 as the dollar broadly retreated. Chile and Peru's currencies gained about 1% each as copper prices rose. Traders were focused on US inflation data due Tuesday and the Federal Reserve's expected 75 basis point hike.

- Date: 2022-09-12 · published 2022-09-12T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/39788-latam-currencies-rally-as-dollar-weakens-ahead-of-u-s-inflation-data
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A firmer real and peso make Brazilian and Mexican exporters more willing to sell soybeans, corn and meal, while a weaker dollar supports commodity prices more broadly, so the effect on feed prices is mildly supportive.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2017-01-20 | [Latam currencies up ahead of Trump inauguration](https://feedsoft.ai/events/73272-latam-currencies-up-ahead-of-trump-inauguration.md) | +4.0% | +3.9% |
| WTI | 2023-09-18 | [Canadian dollar hits 1-month high ahead of inflation data](https://feedsoft.ai/events/34337-canadian-dollar-hits-1-month-high-ahead-of-inflation-data.md) | -0.9% | -3.5% |
| WTI | 2020-07-27 | [Dollar’s weakness boosts rally in commodities and currencies - Gulf Times](https://feedsoft.ai/events/5318-dollar-s-weakness-boosts-rally-in-commodities-and-currencies-gulf-times.md) | -2.7% | +2.6% |
| WTI | 2021-05-11 | [Commodity currencies hold advantage as dollar waits for inflation and Fed \| Reuters](https://feedsoft.ai/events/47003-commodity-currencies-hold-advantage-as-dollar-waits-for-inflation-and-fed.md) | +2.0% | +8.0% |
| WTI | 2021-08-18 | [Canadian dollar rallies after hotter-than-expected inflation data](https://feedsoft.ai/events/45794-canadian-dollar-rallies-after-hotter-than-expected-inflation-data.md) | +1.5% | +9.1% |
| DXY | 2023-04-11 | [Latam FX at 5-year high as dollar dips ahead of U.S. inflation data \| Financial Post](https://feedsoft.ai/events/36626-latam-fx-at-5-year-high-as-dollar-dips-ahead-of-u-s-inflation-data-financial.md) | -0.4% | -1.0% |
| 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% |
| DXY | 2023-11-14 | [Canadian dollar rallies as investors cheer U.S. inflation data](https://feedsoft.ai/events/33408-canadian-dollar-rallies-as-investors-cheer-u-s-inflation-data.md) | -1.8% | -1.4% |

## Sources

- reuters.com: https://www.reuters.com/article/legal/government/latam-currencies-rally-as-dollar-weakens-ahead-of-us-inflation-data-idUSL1N30J1K8/

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