# Strong dollar weighs on Latin American currencies | Financial Post

> A surging dollar pressured Latin American currencies on December 9, with Chile's peso and Brazil's real each sliding about 1%. Mexico's peso slipped 0.3% after annual inflation accelerated to 7.37% in November. Brazil's central bank had raised its key rate by 150 basis points to 9.25%.

- Date: 2021-12-09 · published 2021-12-09T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/43821-strong-dollar-weighs-on-latin-american-currencies-financial-post
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.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 stronger dollar and weaker Brazilian real raise the local-currency cost of imported feed ingredients and grains for Brazil and Mexico. Mexico's inflation also points to tighter policy and slower demand.

## Read by commodity

- DXY: bullish ▲
- USDBRL: bullish ▲
- USDMXN: bullish ▲
- USDPEN: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-07-29 | [The strengthening of the U.S. dollar against the Latin American currencies - Latinoamérica 21](https://feedsoft.ai/events/40785-the-strengthening-of-the-u-s-dollar-against-the-latin-american-currencies.md) | -0.2% | +0.8% |
| 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 | 2024-04-18 | [Dollar strength weighs on Latam FX; copper prices lift currencies of Peru, Chile - Finance Funds Update](https://feedsoft.ai/events/31046-dollar-strength-weighs-on-latam-fx-copper-prices-lift-currencies-of-peru-chile.md) | -0.1% | -1.4% |
| DXY | 2020-09-23 | [Currencies slip as dollar gains on safe-haven demand, rand drops 1% \| Financial Post](https://feedsoft.ai/events/51393-currencies-slip-as-dollar-gains-on-safe-haven-demand-rand-drops-1-financial-post.md) | +0.8% | -1.4% |
| DXY | 2023-11-16 | [The Impact of the Strong U.S. Dollar on Asian Currencies](https://feedsoft.ai/events/12030-the-impact-of-the-strong-u-s-dollar-on-asian-currencies.md) | -0.3% | -1.2% |
| USDBRL | 2022-07-29 | [The strengthening of the U.S. dollar against the Latin American currencies - Latinoamérica 21](https://feedsoft.ai/events/40785-the-strengthening-of-the-u-s-dollar-against-the-latin-american-currencies.md) | +0.0% | -1.9% |
| USDBRL | 2024-10-30 | [Latin American Currencies Dip As Mexican Peso Hits Two-Year Low - Finimize](https://feedsoft.ai/events/28093-latin-american-currencies-dip-as-mexican-peso-hits-two-year-low-finimize.md) | +0.8% | +2.6% |
| 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% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/strong-dollar-weighs-on-latin-american-currencies
- reuters.com: https://www.reuters.com/markets/europe/mexican-peso-drops-rising-inflation-perus-sol-steady-2021-12-09/

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