# Latam FX sinks ahead of Fed; Chile central bank seen holding rates - Markets - Business Recorder

> Latin American currencies fell on Wednesday, led by the Mexican and Colombian pesos, which dropped more than 1% each as oil weakness hit crude exporters. The Mexican peso also sold off after President Lopez Obrador tested positive for COVID-19, and the Brazilian real weakened on weak FDI data ahead of a Fed decision.

- Date: 2021-01-27 · published 2021-01-27T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/49445-latam-fx-sinks-ahead-of-fed-chile-central-bank-seen-holding-rates-markets
- Commodities: [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), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md)

## Why it matters

Weaker Mexican and Colombian currencies raise the local-currency cost of imported feed ingredients and can increase buying pressure from importers, while lower oil prices weigh on energy-linked freight and fuel costs.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-03-16 | [Latam FX caught in virus-driven rout; Chile central bank cuts rates](https://feedsoft.ai/events/6398-latam-fx-caught-in-virus-driven-rout-chile-central-bank-cuts-rates.md) | -35.6% | -29.5% |
| WTI | 2022-11-28 | [C$ hits one-week low as China protests rattle investors - Markets - Business Recorder](https://feedsoft.ai/events/38912-c-hits-one-week-low-as-china-protests-rattle-investors-markets-business-recorder.md) | +4.6% | +4.2% |
| WTI | 2022-11-24 | [Canadian dollar steadies as investors cheer Fed’s dovish signal - Markets - Business Recorder](https://feedsoft.ai/events/38909-canadian-dollar-steadies-as-investors-cheer-fed-s-dovish-signal-markets.md) | +4.1% | -0.4% |
| WTI | 2022-03-16 | [Palm extends losses - Markets - Business Recorder](https://feedsoft.ai/events/5497-palm-extends-losses-markets-business-recorder.md) | +15.4% | +4.3% |
| WTI | 2020-06-30 | [C$ pares monthly gain as data shows record economic contraction - Markets - Business Recorder](https://feedsoft.ai/events/52858-c-pares-monthly-gain-as-data-shows-record-economic-contraction-markets-business.md) | +2.3% | +3.2% |
| USDBRL | 2021-02-09 | [Brazil's real leads Latam FX losses on fiscal concerns - Markets - Business Recorder](https://feedsoft.ai/events/48852-brazil-s-real-leads-latam-fx-losses-on-fiscal-concerns-markets-business-recorder.md) | +1.2% | +9.3% |
| USDBRL | 2021-03-03 | [Brazil real slumps to three-month low as central bank intervenes selling $2bn - Markets - Business Recorder](https://feedsoft.ai/events/12205-brazil-real-slumps-to-three-month-low-as-central-bank-intervenes-selling-2bn.md) | +1.7% | +0.6% |
| USDBRL | 2020-06-25 | [Latam stocks fall on virus woes; Mexican peso weak before rate move - Markets - Business Recorder](https://feedsoft.ai/events/52835-latam-stocks-fall-on-virus-woes-mexican-peso-weak-before-rate-move-markets.md) | +0.9% | -3.0% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/latam-fx-sinks-ahead-of-fed-chile-c-bank-seen-holding-rates
- brecorder.com: https://www.brecorder.com/news/40056832

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