Latin American currencies close mixed amid the global advance of the dollar; bags fall

FILE IMAGE. Banknotes of 100 dollars and 10,000 Chilean pesos are seen in this illustration taken on August 1, 2016. REUTERS / Rodrigo Garrido / Illustration

By Froilan Romero

SANTIAGO, Dec 17 (Reuters) – Latin American currencies posted a mixed close on Friday, amid a strong rally in the dollar in global markets, while the region’s stock exchanges mostly ended the day. at a loss, in a high volatility session.

* It is the close of a week in which the main central banks of the world exposed their plans to reduce the stimuli applied to face the pandemic and the Bank of England surprised the markets with a rate hike.

* The different paths that the banks took underscored the deep uncertainties about the effect of the omicron variant of the coronavirus on the world economy and the different views on rising inflation, which has accelerated strongly in the United States and Britain, but not so much in Europe and Japan.

* The dollar index, which measures the currency against a gray of six major currencies, closed with a gain of around 0.7%.

* The Mexican peso lost initial gains and closed at 20.8330 per dollar, with a loss of 0.13% compared to the 20.8050 pesos of the Reuters reference price on Thursday and accumulated a slight weekly advance of 0.16 %.

* Analysts said investors continued to absorb decisions this week by various central banks, including the US Federal Reserve and the Bank of Mexico, which gave markets a boost.

* The main stock index S & P / BMV IPC, which is made up of the 35 most liquid companies in the Mexican market, rose 1.94%, to 52,379.37 points.

* The Brazilian real depreciated 0.13%, to 5.6959 units per dollar, while the Bovespa index on the Sao Paulo stock exchange B3 fell 1.04%, to 107,200.56 units.

* In Argentina, the peso fell 0.05%, to 101.96 / 101.97 per dollar in depreciation regulated by the central bank, while the Merval stock index of the Buenos Aires stock exchange rose 0.29% , to 83,234.04 units, in a square that analyzed the consequences of the rejection of the 2022 budget presented by the Government to the Chamber of Deputies.

* “The rejection of the budget can complicate negotiations with the Fund (IMF). Now we must be attentive to the steps that the ruling party will take,” said a stock trader.

* The Chilean peso rose 0.95%, to 839.50 / 839.80 units per dollar in a volatile day ahead of the presidential elections on Sunday that has had strong pressure on the local currency. Meanwhile, the leading index of the Santiago Stock Exchange, the IPSA, fell 0.79%, to 4,357.78 units.

* On Sunday Chileans will go to a ballot in which the next president will be defined between the leftist candidate, Gabriel Boric and the ultraconservative and market favorite José Antonio Kast, in a polarized election that has sowed uncertainty among investors.

* “Both candidates have been making important adjustments in their programs, they have introduced concepts of prudence and realism,” Central Bank of Chile President Mario Marcel said this week, adding that this would be valuable to reassure investors.

* The Colombian peso erased the initial losses and closed up 1.11% at 3,974.32 units per dollar. However, during the week the currency accumulated a depreciation of 1.91%.

* The market closed before the Central Bank announced an increase in its benchmark interest rate by 50 basis points to 3%, in line with expectations, amid higher inflationary expectations.

* While on the stock market, the MSCI COLCAP stock index lost 0.91% to 1,395.00 points.

* The board of the issuing bank began its last meeting, in which the market expects its interest rate to rise 50 basis points to 3% or even surprise with a greater increase to contain new inflationary pressures after the recent announcement of the salary increase that will rule in 2022, 10.07%, almost triple that of this year.

* The Peruvian currency, the sol, gained 0.05%, to 4.037 / 4.038 units per dollar. Meanwhile, the benchmark for the Lima Stock Exchange lost 0.24%, to 538.44 points.

(Report by Froilán Romero. Additional report by Nelson Bocanegra in Bogotá, Jorge Otaola and Walter Bianchi in Buenos Aires and Benjamín Mejías, Edited by Manuel Farías)

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