SANTIAGO, May 23 (Reuters) – Most Latin American currencies closed with losses on Tuesday under pressure from a modest gain in the dollar in global markets and uncertainty over the lack of an agreement to raise debt in the United States. Avoid ceilings and defaults.
* The dollar rose for a second day in a row on Tuesday, touching a six-month high against the yen on expectations that US interest rates would remain high for a longer period of time.
* Several Federal Reserve veterans who spoke on Monday indicated the central bank needed to keep monetary policy tight.
* Meanwhile, representatives from President Joe Biden and congressional Republicans on Tuesday ended another round of debt ceiling talks with no progress, with the government’s $31.4 trillion borrowing limit missed, or in suspension Fall risk of payments.
* The Mexican peso fell to 17.9665 units on Monday, depreciating 0.49% against a Reuters reference price. In last six sessions, accumulated loss of 3%.
“Mexican peso remains under pressure, traders turn close attention to debt ceiling talks,” CI Banco firm said in an analysis note. “In the near term, a deal would likely trigger a new positive momentum for most global financial markets,” he said.
* The main stock index S&P/BMV IPC, which covers the 35 most liquid companies in the Mexican market, fell 0.64% to 53,123.22 units on rising concerns about the risk of default in the United States.
* Market sentiment also weighed on expectations US interest rates will remain high for a longer period after Federal Reserve officials indicated the central bank needs to keep monetary policy tight.
* The Brazilian real ended steady at 4.9721 units per dollar, while the Bovespa index on the B3 stock exchange in Sao Paulo fell 0.27% to 109,915.
* Brazil’s Finance Minister Fernando Haddad said on Tuesday that the government’s new financial rules and tax reform should calm investors and the central bank, and that there is a consensus on the urgency of approving both.
* In Argentina, the peso fell 0.26% to 234.90/234.95 per dollar in depreciation regulated by the central bank, while the Merval stock index rose 0.53% to 340,785.51 units, buying as a hedge against strong inflation that hit the third-largest economy harms. Latin America.
“The market trend has been marked by core ADRS, as they continue to be papers that focus on strategic bets by operators in an environment of high volatility and sensitivity,” said an analyst.
* The Chilean peso fell 0.71% to 803.20/803.50 per dollar. Meanwhile, the IPSA, the flagship index of the Santiago Stock Exchange, gave up gains in the first hour and closed at 5,685.30 units, down 0.12%.
* Colombian peso up 1.52% to close at 4,464 units per dollar, its highest level in five weeks; While the stock market index, MSCI COLCAP fell 0.06% to 1,123.26 points.
* Peru’s currency, the sol, rose 0.16% to 3.685/3.688 units per dollar. Meanwhile, the benchmark on the Lima Stock Exchange declined 0.59% to 542.68.
