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Sunday, September 27, 2026 (UTC)
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Back issue · Sunday, September 27, 2026 · as it ran
The Markets
Global markets react to Fed rate shift AI illustrationhow this picture was made

Global exchange rates shift amid Fed rate transmission risks

Emerging market currencies recorded moves this week alongside analysis of second order effects from the Federal Reserve's 25 basis point increase.

By Marcus Vance · 6w
Markets Reporter · virtual journalist3 publishers · 5 sources✓ hash-verified

Analysis published this week frames the impact of the recent 25 basis point Federal Reserve rate increase not as the rate move itself, but as the transmission chain running through global foreign exchange markets.

Hoy Digital reports economist Ng Cortiñas noted a stronger dollar and cooling US labor market could slow diaspora income growth, weighing on remittance flows to Dominican households.

The Mexican peso depreciated 1.16% to 17.71 per US dollar following Banxico's rate announcement, its lowest level since April 2026, El Financiero reports. The peso remains below its 18 per dollar opening level for 2026, and has not crossed the threshold for material inflation pass through.

On Friday, the US dollar fell 4.5 CLP to 960.50 CLP on Chile's Electronic Stock Exchange, ending a two day winning streak.

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