EMERGING MARKETS-Latam currencies down again on U.S. rates outlook

miércoles 27 de mayo de 2015 13:43 GYT
 

SAO PAULO, May 27 (Reuters) - Latin American currencies
weakened on Wednesday on the outlook for higher U.S. interest
rates, with Brazil's real falling to its lowest in nearly two
months on concern about the progress of a recent
budget-tightening initiative.  
    Equities were little-changed across the region, with the
broad MSCI Latin American stock index trading
nearly flat.
    With few major economic indicators on Wednesday, traders
continued to trade on the outlook for U.S. interest rates.
Recent encouraging data from the world's largest economy and
comments from Federal Reserve chief Janet Yellen on Friday have
contributed to a widespread perception the Fed will not put off
an interest rate increase until next year, as some investors had
been expecting.
    A U.S. interest rate rise tends to make higher-yielding but
riskier Latin American securities less attractive, weighing on
the region's currencies.
    The Mexican and Chilean pesos  both eased, while
Brazil's real  weakened as low as 3.185 per dollar
before beating back part of those losses in the afternoon.
    Traders including Luciano Copi at Curitiba-based brokerage
Correparti said the real would continue to see pressure for the
time being as the government wrangles with Congress over the
extent of spending cuts that are critical to warding off a
sovereign credit downgrade.
    Equities markets were mostly higher, but the moves were
small. Brazil's Bovespa stock index made up part of the
previous session's losses, driven by bank shares, which had
declined sharply in recent sessions on concerns over changes to
income tax rules. 

    Key Latin American stock indexes and currencies at 1732 GMT:
    
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          1018.7     -0.76      7.33
                                                  
 MSCI LatAm                    2542.51      0.09     -6.87
                                                  
 Brazil Bovespa               54045.96      0.78      8.08
                                                  
 Mexico IPC                    44556.9      0.35      3.27
                                                  
 Chile IPSA                    4036.04      0.48      4.81
                                                  
 Chile IGPA                   19610.63      0.41      3.92
                                                  
 Argentina MerVal            10972.869      1.24     27.90
                                                  
 Colombia IGBC                10250.61      -1.5    -11.90
                                                  
 Peru IGRA                 -            -            -
                                                  
 Venezuela IBC                10847.99      1.03    181.13
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.1556     -0.24    -15.78
                                                  
 Mexico peso                   15.3435     -0.30     -3.91
                                                  
 Chile peso                        616     -0.41     -1.56
                                                  
 Colombia peso                 2536.45      0.37     -5.85
 Peru sol                       3.1561     -0.12     -5.61
                                                  
 Argentina peso                 8.9800     -0.03     -4.79
 (interbank)                                      
                                                  
 Argentina peso                  12.66      0.47     10.58
 (parallel)                                       
                                                  
 
 (Reporting by Bruno Federowski. Editing by Andre Grenon)