EMERGING MARKETS-Latam currencies retreat modestly on Greece vote
SAO PAULO, July 6 (Reuters) - Latin American currencies weakened on Monday after Greece overwhelmingly rejected a bailout offer from creditors, though moves were muted as investors bet the fallout would be limited. Nearly every currency dropped against the dollar. Equities markets were broadly lower, with the MSCI Latin American stock index falling for the second straight session. Greek electors on Sunday voted to reject the bailout conditions imposed by international creditors, raising new doubts about the nation's future in the euro zone and potential economic contagion in the currency bloc. Investors took solace in expectations the European Central Bank or the U.S. Federal Reserve would act to limit global risk aversion, wrote Mark Haefele, chief investment officer for UBS Wealth Management, in a Monday note. Colombia's peso posted the biggest loss among Latin American currencies, impacted by a drop in the price for oil , the nation's top export. Chile's peso also declined alongside the price of its top export, copper. Chilean and Mexican stocks fell slightly, while Brazil's Bovespa stock index fluctuated between small gains and losses throughout early trading. "The market sees the Greece problems as not having a big impact here," said Paulo Petrassi, an economist with Leme Investimentos in Florianopolis, Brazil. Gains in the Bovespa were driven by state-run enterprises Banco do Brasil SA and Petroleo Brasileiro SA , known as Petrobras. Iron-ore miner Vale SA fell about 1 percent, limiting the index's advances. Yields on Brazilian interest rate futures <0#DIJ:> rose across the curve after a weekly central bank survey released on Monday showed economists expect inflation to close the year at 9.04 percent, up from a 9.0 percent estimate a week earlier. Key Latin American stock indexes and currencies at 1441 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 944.09 -2.1 0.84 MSCI LatAm 2476.82 -0.48 -8.76 Brazil Bovespa 52595.88 0.15 5.18 Mexico IPC 44983.2 -0.18 4.26 Chile IPSA 3826.21 -0.44 -0.64 Chile IGPA 18675.79 -0.41 -1.03 Argentina MerVal 11619.63 -1.24 35.44 Colombia IGBC 10158.66 -0.27 -12.69 Venezuela IBC 13366.3 0.05 246.39 Currencies daily % YTD % change change Latest Brazil real 3.1432 -0.15 -15.45 Mexico peso 15.7818 -0.20 -6.58 Chile peso 641.5 -0.82 -5.47 Colombia peso 2665.3 -1.14 -10.40 Peru sol 3.1791 -0.10 -6.29 Argentina peso 9.1025 0.00 -6.07 (interbank) Argentina peso 13.43 1.34 4.24 (parallel) (Reporting by Asher Levine and Bruno Federowski; Editing by Jeffrey Benkoe)
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