Brazil's federal tax revenue experienced its biggest monthly decline this year in July, while the Brazilian real rose against the dollar as Brazilian President Luiz Inacio Lula da Silva expressed support for Argentina joining the BRICS bloc.
Brazil's President, Luiz Inacio Lula Da Silva, announced at the BRICS Summit that the economic alliance will officially abandon the US dollar for trade settlements, aligning with de-dollarization efforts and expanding to include six additional countries by 2024.
Latin American currencies are under pressure from a strong dollar as traders await remarks from Federal Reserve Chair Jerome Powell on U.S. interest rates, while the Chilean peso reaches a three-week high; meanwhile, Argentina stocks are seen as a "safeguard of value" amid economic turmoil, but the country faces opposition to joining the BRICS bloc.
The Latin American currencies index reversed its early loss and gained 0.2% as the dollar lost steam and traders analyzed Federal Reserve Chair Jerome Powell's comments on further rate hikes.
Chinese investments in Brazil dropped by 78% in 2022, reaching the lowest level in 13 years, primarily due to a decrease in funds allocated to resource projects, according to the Brazil-China Business Council.
The US dollar dropped to a two-week low against the euro and other currencies after data revealed lower than expected private payroll growth in August, leading to speculation that the Federal Reserve will halt interest rate increases.
Brazil's GDP exceeded expectations, driven by strong consumption and oil and mining output, while Peru's inflation lowered to its lowest point in two years and Chile's economic activity increased for the first time in six months.
The U.S. dollar declined due to weaknesses in economic growth, leading to a boost in the performance of gold and U.S. equities, while other global assets experienced mixed price movements throughout the week.
Latin American currencies rose, with the Brazilian real leading the gains, ahead of economic data, while Petrobras halted some asset sales after a review, and a Brazilian court approved the debt restructuring plan of Samarco.
The Brazilian real strengthened as iron ore prices rose, while Chile's peso weakened due to falling copper prices; Mexico's peso declined for the third consecutive session; Petrobras shares fell after the company halted some asset sales; Israel's shekel gained after the central bank left interest rates unchanged; trading volumes were low due to the Labor Day holiday in the US.
The U.S. dollar's share in global reserves has fallen below 60% for the first time in decades, as other currencies like the Euro, Pound, and Yen are on the rise due to a growing number of countries settling trade in their national currencies, driven by the de-dollarization process initiated by BRICS to end reliance on the U.S. dollar.
Latin American currencies are experiencing their worst week in four weeks due to the stronger US dollar and concerns about China's economic growth, with Chile's peso hitting a nine-month low, while Brazil's real slipped and Colombia's peso advanced slightly.
Latin American currencies pared gains against the dollar as the U.S. Federal Reserve signaled tighter monetary policy, while Brazilian stocks rose ahead of a rate cut by the central bank.
The EUR/USD pair fell to 1.0569 as concerns about tight financial conditions weigh on economic expectations, with the US Dollar benefiting from the sour sentiment and speculation around inflation-related figures.
Latin American markets rebounded on Friday as the US dollar weakened, following a challenging quarter for emerging market stocks and currency indexes, which experienced their first quarterly decline since June 2020.
Latin American currencies are facing downward pressure due to concerns about U.S. interest rates and weak copper prices, with the Brazilian real hitting a four-month low after disappointing industrial output data.
The dollar weakened and global equities dipped as investors grappled with U.S. unemployment data suggesting a tight labor market and the Federal Reserve's commitment to higher interest rates, while European stocks rebounded from losses.
Brazilian auto exports are expected to decline by double digits in 2023 due to an economic crisis in Argentina, with the automaker association Anfavea projecting a 12.7% drop in exports to 420,000 vehicles; however, the Brazilian automotive market has performed better than anticipated, leading to a revised forecast for local sales this year.
Real USD (USDR), a stablecoin backed by real estate assets and built on Polygon (MATIC), has depegged from the US dollar (USD), causing its value to drop by almost half. The decentralized autonomous organization (DAO) behind USDR, Tangible, plans to put USDR on hold following the depegging incident.
Most Latin American stocks recover from early losses, while Argentine assets decline following a surprise election outcome sparking political uncertainties, with Argentina's sovereign dollar-denominated bonds tumbling after Sergio Massa emerged as the frontrunner in Sunday's election.
Latin American currencies were mostly stable as investors evaluated corporate earnings in Mexico and awaited Chile's interest rate decision, while Brazil's real slipped after data showed a continued downward trend in domestic inflation.
