
Latin American currencies fell to a seven-month low after stronger-than-expected US October inflation boosted the dollar and Treasury yields. Brazil’s real dropped 1.6%, Colombia’s equity index fell 2.4%, and Mexico’s peso lost 0.9% as traders priced in two Federal Reserve rate hikes by March.
Higher US rates and a stronger dollar can draw capital away from emerging markets, weakening regional currencies and raising the local cost of imported feed inputs. The currency pressure is broad across major Latin American markets.
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.
After 301 past bullish macro events, Brazilian Real (BRL per USD) moved a median +0.4% over 5 sessions (57% higher; middle half -1.2% to +1.7%), and +1.0% over 20.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.