EMERGING MARKETS-Latam currencies slip on global dollar gain
SAO PAULO, June 23 (Reuters) - Latin American currencies mostly erased the previous session's gains on Tuesday as traders around the world turned their attention back towards the outlook for higher interest rates in the United States. Every major currency in the region slipped against the dollar, though stock markets traded slightly higher, led by Brazil's Bovespa stock index. U.S. Treasury yields rose on Tuesday, driving global dollar gains, after encouraging housing data boosted the outlook for growth, and higher interest rates, in the world's largest economy. Latin American currencies had risen in the previous session on cooling tensions in Greece's debt negotiations, though a resolution to avert a default has yet to be reached. "The market is putting the Greece question aside for a bit after yesterday's optimism and is back to focusing on the Fed," said Luciano Rostagno, chief strategist with Banco Mizuho in Sao Paulo. Expectations for higher U.S. interest rates tend to sap demand for riskier assets such as Latin American securities. Brazil's real fell to 3.1 per dollar, contributing to a 14.2 percent decline in the year to date. Chile's peso slipped about 0.4 percent, despite higher prices for copper, the country's main export. Equities markets inched higher, with Brazil's Bovespa touching its highest level in nearly a month. Bank shares led gains, while shares of meat packer JBS SA sank 3 percent. JBS said on Tuesday that its purchase of local rival Marfrig Global Foods SA's European Moy Park unit will lead to $50 million a year in cost savings. JBS shares had risen 1 percent on Monday following announcement of the acquisition over the weekend. Key Latin American stock indexes and currencies at 1548 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 991.46 0.42 3.24 MSCI LatAm 2573.4 -0.14 -5.53 Brazil Bovespa 54153.68 0.54 8.29 Mexico IPC 45364.46 0.31 5.14 Chile IPSA 3950.42 0.81 2.58 Chile IGPA 19213.27 0.69 1.82 Argentina MerVal 11476.359 -0.91 33.77 Colombia IGBC 10310.86 0.95 -11.38 Peru IGRA - - - Venezuela IBC 12456.96 1.49 222.82 Currencies daily % YTD % change change Latest Brazil real 3.0956 -0.51 -14.15 Mexico peso 15.393 -0.36 -4.22 Chile peso 634.3 -0.48 -4.40 Colombia peso 2547.6 -0.51 -6.26 Peru sol 3.1801 -0.25 -6.32 Argentina peso 9.0625 0.00 -5.66 (interbank) Argentina peso 13.15 -0.76 6.46 (parallel) (Reporting by Asher Levine; Editing by Meredith Mazzilli)
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