Argentina’s economy contracted 6.7% in June compared with the same month last year, and 1.3% compared with May, government statistics agency Indec said on Thursday. June was the third consecutive month of decline following 5.2% in May and 0.6% in April.
The Brazilian currency Real fell to a 31-month low versus the U.S. dollar on Thursday on jitters ahead of the country’s October election. Jitters across emerging markets caused by a stronger U.S. dollar and exacerbated by the unfolding currency crisis in Turkey already took a toll on the Brazilian unit before this week.
Argentina’s peso currency closed down 3.11% on Wednesday at an all-time low of 21.2 per U.S. dollar, even as the central bank continued selling dollars to try to halt the slide of the local currency, traders said. The currency’s sustained weakening showed a lack of investor confidence in Latin America’s third largest economy, which is blighted by one of the world’s highest inflation rates.
Sterling fell against the dollar and euro on Monday as investors worried about Theresa May's ability to stay on as British prime minister and get what they consider to be a good exit deal from the European Union.
Venezuela will create a new exchange rate for tourists to buy up to US$10,000 of the local Bolivar currency per year in a measure intended to help reduce black market trading, the government said in its official gazette.
Uruguay is too expensive in dollar terms and needs to adapt quickly because the adjustment will come anyway ‘and will be painful’ unless inflation is brought under control and costs equilibrium is reached with Brazil with a competitive dollar at 25 Pesos.
International use of the Euro slipped last year because of the debt crisis in Europe, but the US dollar held its own as the world’s leading currency for reserves held by central banks, according to the European Central Bank.