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Dollar Slide Boosts Latin Currencies as Argentina’s FX Gap Compresses and Reserves Climb

Falling Treasury yields alongside expectations for easier Fed policy pressured the greenback to its weakest levels since early 2022.

Overview

  • The dollar index hovered in the mid‑95s after a 1.2% drop on Wednesday and a further 0.3% slip Thursday, marking four‑year lows, according to market data cited by Bloomberg.
  • Mexico’s peso strengthened to around 17.15 per dollar, a new year‑to‑date best and the strongest level since June 2024, with intraday trading between 17.11 and 17.20, Banxico‑tracked quotes showed.
  • Peru’s sol traded near S/3.35 on Thursday after a S/3.346 close on Wednesday, based on official readings from the Central Reserve Bank of Peru.
  • Argentina’s parallel dollar fell to about ARS 1,475 as major banks quoted the retail dollar near ARS 1,465–1,470, compressing the gap with official and financial rates to roughly 1%–4% near recent lows.
  • Argentina’s central bank bought about USD 52 million Thursday for a 19‑session streak of net purchases, lifting gross reserves to roughly USD 46.24 billion and taking January FX buys above USD 1.1 billion, with total reserves boosted further by a gold revaluation.