Overview
- The U.S. Bureau of Labor Statistics reported a surprise drop of 23,000 nonfarm payrolls, a result that cut market odds of further Federal Reserve rate increases and pushed the dollar lower.
- Mexico's peso strengthened to about MXN 17.13–17.20 as Banco de México kept its policy rate at 6.50% and trimmed its Q3 2026 inflation forecast from 3.8% to 3.5%.
- Peru's interbank dollar fell to roughly S/3.378, its weakest level in four months, supported by the weaker dollar and steady export flows.
- Argentina saw a sharp slowdown in central bank reserve purchases, with the BCRA buying just USD 16 million on the day and USD 111 million for the week after a USD 852 million IMF payment left gross reserves near USD 48.8 billion.
- Markets are watching the durability of the FX repricing, upcoming Argentine inflation data, and whether the Fed's revised path keeps local currencies stronger or triggers fresh pressures on countries with tighter external buffers.