Loading…
Latin American currencies weakened on Sept 7 as rising US Treasury yields pushed the dollar higher. El Salvador became the first country to adopt bitcoin as legal tender, and its digital wallet had to be taken offline due to demand.
The move also complicates about $1 billion in IMF financing the country is seeking.
A stronger dollar against regional currencies raises the cost of dollar-priced feed ingredients for Latin American buyers. The effect on feed prices is modest, as the move is driven mainly by US yields rather than regional supply.
reuters.comSusan MathewSep 7, 2021reuters.comSusan MathewSep 7, 2021Not enough comparable past events yet for a historical read.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
