# Commodity strength, weaker dollar drive Latin American assets higher | Financial Post

> Latin American stocks and currencies gained as commodity prices rose and the dollar softened. Mexican and Colombian currencies led gains on higher oil prices, while Brazil's real rose to a four-month high ahead of an expected 150 basis point rate hike.

- Date: 2022-02-01 · published 2022-02-01T12:00:00.000Z
- Category: macro · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/42906-commodity-strength-weaker-dollar-drive-latin-american-assets-higher-financial
- Commodities: [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Stronger Latin American currencies make dollar-priced exports such as soybeans and corn relatively more expensive for those importers, while supporting local producer margins. The rally is driven largely by currency and rate factors.

## Read by commodity

- WTI: bullish ▲
- USDBRL: bearish ▼
- USDCOP: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| USDBRL | 2022-03-29 | [Dollar’s Strength Defied in Latin America - WSJ](https://feedsoft.ai/events/42472-dollar-s-strength-defied-in-latin-america-wsj.md) | -3.6% | +3.1% |
| 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 | 2017-01-27 | [Latin American currencies strengthen after weak U.S. GDP data \| El Universal](https://feedsoft.ai/events/73184-latin-american-currencies-strengthen-after-weak-u-s-gdp-data-el-universal.md) | -2.0% | -2.4% |
| USDBRL | 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) | -2.7% | -1.8% |
| USDBRL | 2021-08-23 | [Rebound in commodity prices, weaker dollar lift Latam currencies - Markets - Business Recorder](https://feedsoft.ai/events/45760-rebound-in-commodity-prices-weaker-dollar-lift-latam-currencies-markets.md) | -3.8% | -1.3% |
| WTI | 2022-06-07 | [Canadian dollar hits a 7-week high as yield spreads widen \| Financial Post](https://feedsoft.ai/events/41183-canadian-dollar-hits-a-7-week-high-as-yield-spreads-widen-financial-post.md) | +2.1% | -15.8% |
| WTI | 2020-12-02 | [Canadian dollar notches a 2-year high on higher oil prices \| Financial Post](https://feedsoft.ai/events/49875-canadian-dollar-notches-a-2-year-high-on-higher-oil-prices-financial-post.md) | +2.4% | +8.4% |
| WTI | 2022-08-23 | [Canadian dollar snaps losing streak as oil prices jump \| Financial Post](https://feedsoft.ai/events/40272-canadian-dollar-snaps-losing-streak-as-oil-prices-jump-financial-post.md) | +5.3% | -8.4% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/commodity-strength-weaker-dollar-drive-latin-american-assets-higher

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