gear – The US dollar index continues to decline, and most Latin American currencies benefited by the end of Monday; With the Brazilian Real leading the gains at the regional level and remaining the best performing currency in Latin America in the past five days.
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The dollar and bonds fell on Monday. The euro held its gains after European Central Bank President Christine Lagarde said higher interest rates will come in July. Meanwhile, the US currency index monitored by Bloomberg fell 0.7%.
Meanwhile, stocks in Wall Street financial markets remained volatile as investors assess the outlook for monetary policy, inflation and the impact of China’s tough policies on Covid-19 on the global economy. The minutes of the latest Federal Reserve rate-setting meeting will give markets an idea this week about the tightening path of the US central bank.
The reality of the Brazilian smile
The currency that benefited most from the decline in the US dollar index was the Brazilian realWhich rose by 5.14% in the past five days compared to the US currency, and the Brazilian real rose this Monday by 1.4% to 4.81 reals per US dollar.
In Brazil this week Markets will be watching inflation data for mid-May This should shed more light on the decisions that the Central Bank of Brazil may take at the next monetary policy meeting in June, should the increase in the reference rate be maintained.
In contrast, the currency that had the worst performance on Monday was the official Venezuelan bolivarwhich fell more than 3%. Another currency that continues to decline is the Argentine peso wholesale (-0.91% in the past 5 days), While the blue dollar in that country rose to 206.5 pesos per US dollar.
In Chile, Colombia, Mexico and Peru, currencies also rose at the beginning of this week, following the trend of Friday, May 20th. Last month, the currency that had the best performance against the dollar was the Peruvian Sol, which appreciated by 2.37% against the dollar.
In the meantime, the Chilean peso continues to recover and in the past five days rose by 3.28% against the US dollar. After the strong setbacks in the Latin American currency in recent weeks.
Dollar today, Monday, May 23, 2022
💸 Currencies ranking so far in 2022
The Brazilian real continues to regain its strength among the currencies that have the most value compared to the dollar globally, Although the Russian ruble has continued to gain in recent weeks. The Chilean peso and the Colombian peso are in a similar level of performance (more than 2%) compared to the US currency after recovering from the strong decline that the two currencies suffered last month, although the Peruvian sol is the currency that recorded the best performance. in the last 30 days (as of May 23) against the dollar.