EMERGING MARKETS-Brazil real rallies in thin trade as intervention eyed

martes 30 de diciembre de 2014 09:45 GYT

SAO PAULO, Dec 30 (Reuters) - The Brazilian real 
rallied on Tuesday, erasing the previous session's losses, with
investors watching for an imminent announcement from the central
bank over the future of its currency intervention program.
    Most other Latin American currencies and stock markets edged
    The real strengthened nearly 1.8 percent, the most in nearly
two weeks, partly due to traders seeking to move the so-called
Ptax rate at the end of the month, which is used as a reference
for a variety of currency contracts. 
    Trading volume was low in the year-end holiday period, with
most market participants awaiting an announcement from Brazil's
central bank over expected modifications to its daily currency
intervention program.
    The bank has helped support the real by providing hedging
protection to local businesses via currency swaps. It remains
unclear how the program will be scaled down next year, and the
central bank has said it would unveil its changes in coming
    "You put together low liquidity, a fight over the end-month
Ptax rate, and a lack of relevant news and the outcome is a very
sensitive market," said Reginaldo Siaca, head of currency at
brokerage Tov in Sao Paulo.
    Brazil's benchmark Bovespa stock index rose for the
fifth session in six, though gains were slight.
    Shares of widely traded companies, such as lender Banco
Bradesco SA and iron-ore mining firm Vale SA
, contributed the most to the index's rise.
    Should the Bovespa remain at its current level of 50,750
points on Tuesday, it will close the year with a loss of about
1.5 percent. That move will be in line with predictions in a
Reuters poll in September. 
    Key Latin American stock indexes and currencies at 1324 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          954.75     -0.41     -4.39
 MSCI LatAm                    2745.32       0.6    -14.75
 Brazil Bovespa               50789.28      0.39     -1.39
 Mexico IPC                          -         -         -
 Chile IPSA                    3855.71      0.03      4.23
 Chile IGPA                    18884.7      0.03      3.61
 Argentina MerVal                    -         -   -100.00
 Colombia IGBC                11570.54         0    -11.48
 Peru IGRA                           -         -   -100.00
 Venezuela IBC                       -         -   -100.00
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    2.6625      1.63    -11.48
 Mexico peso                   14.7406      0.20    -11.60
 Chile peso                        607     -0.08    -13.33
 Colombia peso                 2386.08     -0.31    -19.03
 Peru sol                        2.988      0.03     -6.53
 Argentina peso                 8.5500      0.03    -24.06
 Argentina peso                  13.68     -2.19    -26.90
 (Reporting by Bruno Federowski; Writing by Asher Levine;
Editing by W Simon)