# Latam FX steadies after selloff; Oil-linked currencies slide | Financial Post

> Most Latin American currencies steadied after a sharp selloff, while oil-exporter currencies such as the Mexican peso and Colombian peso extended declines as crude fell about 4%. Brazil's central bank held its benchmark rate at a record-low 2.00% and kept a dovish forward guidance.

- Date: 2020-10-29 · published 2020-10-29T12:00:00.000Z
- Category: macro · region Latin America · magnitude low
- Page: https://feedsoft.ai/events/50919-latam-fx-steadies-after-selloff-oil-linked-currencies-slide-financial-post
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Brazilian Real (BRL per USD)](https://feedsoft.ai/c/USDBRL.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [Colombian Peso (COP per USD)](https://feedsoft.ai/c/USDCOP.md)

## Why it matters

Lower crude prices weaken oil-linked Latin currencies and reduce biofuel and diesel cost pressure on feed and freight. Brazil's steady low rates keep the real under pressure, which can favor Brazilian soy and corn exports.

## Read by commodity

- WTI: bearish ▼
- USDBRL: neutral
- USDCOP: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2020-10-30 | [Commodity currencies slide on oil, dollar braces for election \| Financial Post](https://feedsoft.ai/events/50816-commodity-currencies-slide-on-oil-dollar-braces-for-election-financial-post.md) | +7.3% | +26.5% |
| WTI | 2022-09-29 | [C$ slides as currency handbook goes 'out the window' \| Financial Post](https://feedsoft.ai/events/39814-c-slides-as-currency-handbook-goes-out-the-window-financial-post.md) | +6.8% | +7.8% |
| WTI | 2020-06-12 | [Mexico's peso up strongly after brutal selloff; Brazil's real down \| Financial Post](https://feedsoft.ai/events/52838-mexico-s-peso-up-strongly-after-brutal-selloff-brazil-s-real-down-financial-post.md) | +6.6% | +11.4% |
| WTI | 2020-07-23 | [Latam FX weakens, Brazil's real comes off one-month high \| Financial Post](https://feedsoft.ai/events/52312-latam-fx-weakens-brazil-s-real-comes-off-one-month-high-financial-post.md) | -1.7% | +2.5% |
| WTI | 2020-10-29 | [Latam FX fails to shake off virus, election worries \| Financial Post](https://feedsoft.ai/events/50920-latam-fx-fails-to-shake-off-virus-election-worries-financial-post.md) | +4.6% | +22.3% |
| USDBRL | 2020-05-07 | [Latam FX on fragile footing after coronavirus shock, downside risks linger \| Financial Post](https://feedsoft.ai/events/53338-latam-fx-on-fragile-footing-after-coronavirus-shock-downside-risks-linger.md) | +4.2% | -10.3% |
| USDBRL | 2020-06-12 | [Mexico's peso up strongly after brutal selloff; Brazil's real down \| Financial Post](https://feedsoft.ai/events/52838-mexico-s-peso-up-strongly-after-brutal-selloff-brazil-s-real-down-financial-post.md) | +7.6% | +7.2% |
| USDBRL | 2020-10-20 | [Colombia's peso leads rise among Latam FX after approving 2021 budget \| Financial Post](https://feedsoft.ai/events/50918-colombia-s-peso-leads-rise-among-latam-fx-after-approving-2021-budget-financial.md) | +0.6% | -4.3% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/latam-fx-steadies-after-selloff-oil-linked-currencies-slide

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