# Latam FX slump as hot U.S. inflation sends dollar soaring | Financial Post

> Latin American currencies fell sharply on September 13 after US consumer prices rose unexpectedly in August, boosting the dollar 1.4%. The Brazilian, Colombian and Mexican currencies each dropped more than 1%, and Chile's peso fell 2.3% as copper prices tumbled.

- Date: 2022-09-13 · published 2022-09-13T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/39796-latam-fx-slump-as-hot-u-s-inflation-sends-dollar-soaring-financial-post
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Hot US inflation raises expectations of aggressive Fed hikes, strengthening the dollar and raising the dollar cost of Latin American feed and oilseed exports. Weaker commodity-linked currencies also reflect softer demand expectations.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-05-27 | [Dollar firms as traders brace for U.S. inflation gauge \| Financial Post](https://feedsoft.ai/events/47285-dollar-firms-as-traders-brace-for-u-s-inflation-gauge-financial-post.md) | +0.3% | +1.3% |
| DXY | 2023-04-19 | [Dollar firms as U.S. yields rise, high British inflation underpins pound \| Financial Post](https://feedsoft.ai/events/36664-dollar-firms-as-u-s-yields-rise-high-british-inflation-underpins-pound.md) | +0.4% | +0.1% |
| DXY | 2022-01-27 | [Strong dollar hits Latam FX, Russian assets rise \| Financial Post](https://feedsoft.ai/events/43348-strong-dollar-hits-latam-fx-russian-assets-rise-financial-post.md) | +0.1% | +0.7% |
| DXY | 2022-12-28 | [China's yuan weakens as U.S. dollar gains on sustained inflation outlook \| Financial Post](https://feedsoft.ai/events/38448-china-s-yuan-weakens-as-u-s-dollar-gains-on-sustained-inflation-outlook.md) | -0.2% | -2.2% |
| DXY | 2021-05-31 | [Dollar near 2-month high vs yen, U.S. inflation beats expectations \| Financial Post](https://feedsoft.ai/events/47351-dollar-near-2-month-high-vs-yen-u-s-inflation-beats-expectations-financial-post.md) | -0.2% | +1.1% |
| USDBRL | 2021-09-14 | [Latam FX falls as U.S. inflation optimism fizzles out \| Financial Post](https://feedsoft.ai/events/45291-latam-fx-falls-as-u-s-inflation-optimism-fizzles-out-financial-post.md) | +2.3% | +6.2% |
| USDBRL | 2022-12-14 | [Latam FX slides ahead of U.S. Fed decision, unrest in Peru weighs \| Financial Post](https://feedsoft.ai/events/38512-latam-fx-slides-ahead-of-u-s-fed-decision-unrest-in-peru-weighs-financial-post.md) | -1.3% | -3.0% |
| USDBRL | 2021-12-09 | [Strong dollar weighs on Latin American currencies \| Financial Post](https://feedsoft.ai/events/43821-strong-dollar-weighs-on-latin-american-currencies-financial-post.md) | +3.1% | +1.5% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/latam-fx-slump-as-hot-u-s-inflation-sends-dollar-soaring

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