# Latam FX drops on rising U.S. interest rate risk | Central bank | NDA News UK

> Most Latin American currencies fell on December 14 as hotter-than-expected U.S. producer price data, with PPI up 9.6% year-on-year in November, boosted bets on an earlier Federal Reserve rate hike. The Chilean peso slipped 0.3% ahead of an expected 125 basis point central bank hike to 4.0%, while copper prices declined on COVID-19 disruptions in China.

- Date: 2021-12-15 · published 2021-12-15T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/43877-latam-fx-drops-on-rising-u-s-interest-rate-risk-central-bank-nda-news-uk
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

A stronger dollar on earlier Fed tightening tends to weaken Latin American currencies, which raises the cost of imported feed inputs for buyers in the region and can pressure local demand. The copper decline also signals softer Chilean and Chinese industrial activity.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-09-12 | [European Central Bank cuts interest rates to record low - ABC News](https://feedsoft.ai/events/57284-european-central-bank-cuts-interest-rates-to-record-low-abc-news.md) | -0.3% | +0.3% |
| DXY | 2022-01-26 | [Bank of Canada interest rate decision: what you need to know](https://feedsoft.ai/events/43395-bank-of-canada-interest-rate-decision-what-you-need-to-know.md) | +0.2% | -0.4% |
| DXY | 2022-12-15 | [Oil prices slid 2% as dollar firms and central banks hike interest rates](https://feedsoft.ai/events/38152-oil-prices-slid-2-as-dollar-firms-and-central-banks-hike-interest-rates.md) | +0.4% | -2.2% |
| DXY | 2020-09-17 | [Asian Shares Drop, Dollar Rises On Fed Interest Rate Promise](https://feedsoft.ai/events/51285-asian-shares-drop-dollar-rises-on-fed-interest-rate-promise.md) | +1.6% | +0.6% |
| DXY | 2016-12-14 | [US raises key interest rate by 0.25% on strengthening economy - BBC News](https://feedsoft.ai/events/5969-us-raises-key-interest-rate-by-0-25-on-strengthening-economy-bbc-news.md) | +1.6% | +0.9% |
| USDBRL | 2024-07-02 | [Latam assets drop on fiscal policy, interest rates caution](https://feedsoft.ai/events/9454-latam-assets-drop-on-fiscal-policy-interest-rates-caution.md) | -2.8% | +1.2% |
| USDBRL | 2024-08-13 | [Brazil's central bank had no reason to intervene in FX amid 'accelerated weakening'](https://feedsoft.ai/events/11942-brazil-s-central-bank-had-no-reason-to-intervene-in-fx-amid-accelerated.md) | -1.8% | +2.6% |
| USDBRL | 2020-03-04 | [Brazil central bank to intervene in FX swaps market on Thursday](https://feedsoft.ai/events/54310-brazil-central-bank-to-intervene-in-fx-swaps-market-on-thursday.md) | +4.1% | +15.5% |

## Sources

- nda.news: https://nda.news/central-bank-st_1907/news/latam-fx-drops-on-rising-us-interest-rate-risk-sn_2964192/

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