Chilean, Mexican pesos topple to two-week low as Middle East tensions flame up


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Chilean, Mexican pesos topple to two-week low as Middle East tensions flame up

Both Mexican and Chilean peso dropped to their two-week low against a bolstered US Dollar on Friday, the 3rd of January 2019, following rise of an appetite for safe-haven assets such as gold and the US Dollar greenback after a US airstrike on Baghdad Airport had spurred up geopolitical heats over the Middle East, raising possibilities of another US-Iran military confrontation nearly five years after a 2014-truce.

In point of fact, the death of Iranian Major General, Qassem Soeimani, who was heading the Iran’s elite Quds force and had been a centrepiece of advancing Tehran’s regional influence over the Gulf, prompted a cascade of fierce reactions from the Iranian Supreme Leader, Ayatollah Ali Khamenei, who had vowed a harsh revenge against the United States later this week, while leaders from other Gulf and European nations had voiced concerns over the flaming issue, triggering a caustic shadow over FX markets, however, crude oil prices’ alongside gold surged more than 3 per cent and 1.5 per cent respectively on Friday (January 3rd), while MSCI’s index of LATAM currencies dropped 0.5 per cent against a steadier US Dollar despite another set of calamitous economic data indicating a fifth of the nation’s economy had been dipping deeper in to a recession.

Citing statistics, on Friday’s (January 3rd) LATAM market closure, Mexican Peso shed 0.48 per cent to 18.92 against the US Dollar, while Chilean Peso drowned 0.73 per cent to 756.2 per US Dollar. Meanwhile Brazilian real slid 0.71 per cent to 4.05 per US Dollar and Colombian Peso had wrapped up the day a penny down to 3250.1 against the American currency.