Paraguayan Guarani Gains Momentum as Dollar Weakens Further

TradingView data for July 15, 2025, shows the Paraguayan Guarani made strong gains against the US dollar over the last 24 hours, capping nearly three weeks of progressive appreciation.

The Guarani traded at 7,615 per dollar during the morning session, confirming sustained pressure on the greenback. Market participants traded briskly, driving volumes above monthly averages.

Exporters and institutional investors increased demand for local assets, responding to robust hydroelectric export earnings and a stable inflation outlook.

Strong trade surpluses from Paraguay’s leading energy projects, especially Itaipú and Yacyretá, have powered healthy foreign exchange inflows.

Analysts noted that ETF inflows into emerging market debt remained high, and Paraguay stood out within Latin America for its fiscal discipline and resilience.

Technical analysis of the daily USD/PYG chart demonstrated a clear downward break below the 100-day, 50-day, and 20-day simple moving averages.

The Guarani’s rally began June 26, gaining momentum in early July as the pair pierced through key support levels around 7,800 and ultimately fell to new recent lows just above 7,600.

The Relative Strength Index (RSI) fell deep into oversold territory, marking a reading near 20. This suggests an extreme condition, where sellers exert significant control and buyers have yet to step in.

The Moving Average Convergence Divergence (MACD) indicator confirmed persistent bearish momentum, with the MACD line sliding far below the signal line and histogram bars steepening in red.

Paraguayan Guarani Strengthens Amid Solid Fundamentals

These technical markers demonstrate not just direction but sustained acceleration. Bollinger Bands widened as volatility increased sharply. USD/PYG closed outside the lower band multiple sessions in a row, pointing to heavy, one-sided trading.

Support has developed near the 7,543–7,615 area. No confirmed reversal patterns have formed, and volume analyses suggest conviction remains strong among Guarani buyers.

Macro fundamentals supported technical signals. Paraguay’s balance of trade remained positive, underpinned by consistent energy receipts and contained consumer price rises.

The local market saw no evidence of extraordinary central bank intervention, and official channels observed natural market flows dominated by exporter settlements and institutional investment.

Throughout the trading session, no major rumors or disruptive headlines altered the landscape. Exporter flows and bond-related inflows dictated price action.

Dollar Index (DXY) losses, which followed a protracted global downdrift, further favored Guarani strength. Traders kept a close eye on support levels, with the consensus pointing to continued pressure on the dollar unless US fundamentals improve.

In conclusion, the latest trading day reflects a Guarani that grows stronger on credible economic performance, rising foreign receipts, and a deepening technical correction against the dollar.

Markets await fresh catalysts and central bank commentary, but at present, buyers drive the trend with firm conviction, making the Guarani the region’s clear outlier in currency performance.