# Latam currencies weaken as dollar firms, El Salvador's bitcoin adoption hits snags

> 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.

- Date: 2021-09-07 · published 2021-09-07T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/45336-latam-currencies-weaken-as-dollar-firms-el-salvador-s-bitcoin-adoption-hits
- Commodities: [Peruvian Sol (PEN per USD)](https://feedsoft.ai/c/USDPEN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

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.

## Read by commodity

- DXY: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2023-02-15 | [Most Asian Currencies Hit 1-Month Lows As Dollar Firms After U.S. CPI Data](https://feedsoft.ai/events/37602-most-asian-currencies-hit-1-month-lows-as-dollar-firms-after-u-s-cpi-data.md) | +0.8% | +1.8% |
| DXY | 2024-04-12 | [Latam currencies set for worst week in 6 months as dollar soars - Finance Funds Update](https://feedsoft.ai/events/31048-latam-currencies-set-for-worst-week-in-6-months-as-dollar-soars-finance-funds.md) | +1.1% | +0.5% |
| DXY | 2023-02-15 | [Latam FX slides as dollar firms, Colombian peso hits near six-week low - Financial Post](https://feedsoft.ai/events/37628-latam-fx-slides-as-dollar-firms-colombian-peso-hits-near-six-week-low-financial.md) | +0.8% | +1.8% |
| DXY | 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) | +0.8% | -0.3% |
| DXY | 2018-03-01 | [Latam currencies weaker with eyes on Fed; stocks edge up](https://feedsoft.ai/events/66187-latam-currencies-weaker-with-eyes-on-fed-stocks-edge-up.md) | -0.1% | -0.8% |

## Sources

- reuters.com: https://www.reuters.com/article/emerging-markets-latam-idUSL1N2Q91P8/
- reuters.com: https://www.reuters.com/article/markets/us/latam-currencies-weaken-as-dollar-firms-el-salvadors-bitcoin-adoption-hits-sna-idUSL1N2Q916E/

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