US Dollar rises sharply in Latam; Chilean peso drops to record lows

• Latin American currencies are the worst performers.  
• The bearish trend intensifies amid turmoil in the region.  

The US Dollar is up significantly against Latin American currencies on Tuesday, with the Chilean peso leading losses and trading at record low levels. The USD/CLP reached earlier today 800 for the first time, before pulling back to 782.00. Equity prices in Chile fell to the lowest levels in more than two years as protests in the streets continue.  

The greenback rose today more than 3% in Chile and is up by more than 10% over the last thirty days. In Colombia, it gains today 1.60%, with the USD/COP trading at 3,390  the highest in a week.  

Global financial markets show low volatility on Tuesday as traders now await a speech from US President Trump Economic Club of New York. The outlook in Latin America worsened over the last hours following the resignation under pressure from riots in the streets and the military on Sunday of Evo Morales. There appears to be no bright spot in the region. Weeks ago, Peruvian President closed the Parliament; in Argentina the economic crisis intensified after Peronist Fernández won the presidential elections; Venezuela remains in economic chaos and in Brazil, former President Lula was released from prison creating a more complex political environment.  

Mexican peso slides but remains in recent range  

The USD/MXM is rising on Tuesday, trading slightly below 19.20 and close to the upper limit of the current consolidation range that has been in place since mid-October. The critical support of the range is the 19.00 zone. The Mexican peso remains steady in the mentioned area, unaffected so far from the Latin American crisis and ahead of the Bank of Mexico meeting on Thursday.