Overview
- Friday’s U.S. jobs report showed 172,000 nonfarm payrolls and a 4.3% unemployment rate, a stronger-than-expected print that pushed markets to price a higher chance of Fed tightening.
- The dollar’s rally translated quickly into regional stress, with the Mexican peso trading near 17.47 MXN/USD and local markets recording heavier volatility and stock losses.
- Peru’s sol jumped to about S/3.474 ahead of the presidential runoff and the Lima stock index fell nearly 5% as investors sought safer assets and adjusted portfolios.
- In Argentina, the central bank’s decision to close positions in the dollar-futures market reduced official hedging supply and shifted demand toward spot and financial dollars while Banco Nación opened Monday at ARS 1,460 for the retail dollar.
- Market attention now focuses on central banks’ responses, the outcome of Peru’s runoff and upcoming Fed guidance because those factors will determine whether dollar demand stabilizes or keeps pressuring regional currencies.