USD strengthens on Cuba regime change prospects amid LatAm uncertainty

The US dollar gained 0.2% against emerging market currencies as reports surfaced of potential regime change efforts in Cuba, following similar developments in Venezuela. The Wall Street Journal reports the Trump administration is pursuing economic pressure tactics targeting Cuba's oil supply and medical missions, aiming for leadership transition by year-end. This geopolitical development has strengthened safe-haven demand for USD, with USD/MXN rising 0.4% to 20.85 and USD/BRL advancing 0.3% to 6.12. Latin American currencies face renewed pressure as regional political instability concerns mount. The dollar index (DXY) touched 108.50, approaching recent highs. Market participants are reassessing risk exposure to emerging markets, particularly those with Cuban economic ties. Technical indicators suggest further USD strength if DXY breaks above 108.75 resistance, while support holds at 108.20. Traders should monitor developments closely as successful regime change could reshape regional currency dynamics and trade flows.