EMERGING MARKETS-Latam currencies drop vs dollar; Brazil rate yields fall

lunes 20 de julio de 2015 13:37 GYT

SAO PAULO, July 20 (Reuters) - Latin American currencies
weakened on Monday, tracking the dollar's rally in global
markets, while yields on Brazil interest rate futures dipped on
the outlook for inflation.
    Every major currency in the region eased against the dollar
though Colombia's peso was little changed. Mexican 
and Chilean stocks moved slightly higher while Brazilian
shares sank, driving the broader MSCI Latin American
stock index to its second straight loss.
    The dollar touched its highest since April 23 against a
basket of major currencies, supported by statements made
by Federal Reserve Chair Janet Yellen last week reiterating that
U.S. interest rates will probably rise later in the year.
    Mexico's peso weakened past the 16-per-dollar level
for the first time despite recent central bank efforts to
support the currency through market intervention.
    Meanwhile, Brazil's real  weakened for a third
straight day as investors continued to weigh mounting political
uncertainty due to conflicts within President Dilma Rousseff's
governing coalition. The infighting could potentially derail
spending cuts critical to fending off a credit downgrade.
    Yields on Brazilian interest rate futures <0#DIJ:> fell
across the yield curve after a local news agency, citing "a
qualified source," said the government is satisfied with what it
sees as a decline in inflation expectations.
    According to the results of a Reuters poll of analysts on
Monday, Brazil's inflation rate likely slowed in the month to
mid-July as the pace of economic growth has slowed, opening the
door for a smaller interest rate hike later this month.
    Key Latin American stock indexes and currencies at 1720 GMT:

 Stock indexes                 Latest    Daily  YTD pct
                                           pct   change
 MSCI Emerging Markets         934.47    -0.77    -1.53
 MSCI LatAm                  2,426.18    -0.92   -10.23
 Brazil Bovespa             51,819.92       -1     3.62
 Mexico IPC                 45,593.09     0.59     5.67
 Chile IPSA                   3918.15     0.46     1.74
 Chile IGPA                 19,035.25     0.41     0.87
 Argentina MerVal           12,183.85    -1.56    42.02
 Colombia IGBC               9,989.33    -1.48   -14.14
 Venezuela IBC              15,125.78     1.59   291.99
 Currencies                    Latest    Daily  YTD pct
                                           pct   change
 Brazil real                   3.2148    -0.70   -17.34
 Mexico peso                   15.997    -0.43    -7.83
 Chile peso                    649.25    -0.54    -6.60
 Colombia peso                  2,760    -0.04   -13.48
 Peru sol                      3.1851    -0.09    -6.47
 Argentina peso                9.1500    -0.03    -6.56
 Argentina peso                 14.37    -1.04    -2.57
 (Reporting by Asher Levine and Bruno Federowski, editing by G