Latin America’s currencies registered losses after the positive US employment data revived uncertainty about future movements in interest rates in the world’s leading economy after the increase expected for next week.
Money markets estimate a 96% chance that the Federal Reserve will raise interest rates by 25 basis points next week.
Meanwhile, the dollar index, which measures the greenback against a basket of six major currencies, appreciated around 0.3%.
The Mexican peso was trading at 16.9139 units, with a weakening of 0.24% against the Reuters reference price, on Thursday, in its second day of losses. Over the course of the week, it added a decline of 0.95% after reaching its best level since 2015 on Tuesday.
The main stock index, S&P/BMV IPC, which makes up the 35 most liquid companies in the Mexican market, rose 0.13% to 53,633.58 units, following the performance of the markets in New York, with the eyes of investors set on the season of corporate results for the second quarter.
The Brazilian real appreciated 0.55%, to 4.7728 units per dollar, while the Bovespa index of the B3 stock exchange in Sao Paulo climbed 1.71%, to 120,164.74 points.
In Argentina, the peso fell 0.24%, to 269.35 per dollar, in depreciation regulated by the central bank, while the Merval stock index gained 1.29%, to 465,149.68 units, before taking speculative positions awaiting news on a complex agreement with the International Monetary Fund (IMF), at a time when the market awaits the announcement of new economic measures.
“The market seeks to refine those hands that are more oriented towards trading and are also attentive to the ups and downs of the political-economic scenario,” said economist Gustavo Ber.
The Chilean peso fell 0.24% to 819.50/819.80 per dollar, also pressured by a decline in the price of copper, the country’s main shipment. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, fell 0.53% to 6,289.57 units.
Copper and most industrial metals prices declined as investors were disappointed by China’s, the world’s largest metals consumer’s, modest stimulus steps to support its economy.
The Colombian peso appreciated 0.20% to 3,970 units per dollar, in its seventh session of gains and holding at 13-month highs, while the MSCI COLCAP stock index lost a marginal 0.05% to 1,173.21 points.
In the opinion of analysts, the session will be cautious before the Fed meeting next week.
The Peruvian currency, the sol, depreciated by a slight 0.08% to 3.583 or 3.588 units per dollar. Meanwhile, the benchmark of the Lima Stock Exchange improved just 0.03% to 590.39 points.
