EMERGING MARKETS-Brazil's real rebounds from three-day decline; Rousseff poll eyed
SAO PAULO, July 21 (Reuters) - Brazil's real ended a three-day slump on Tuesday after some investors saw the currency's recent decline as overdone, while the nation's stock market fluctuated after the release of a poll showing a dismal approval rate for President Dilma Rousseff. Most other Latin American currencies fell slightly, though Mexico's peso managed to stay in positive territory a day after hitting its weakest level against the dollar on record. Equities markets were mixed, however the broader MSCI Latin American stock index gained for the first session in three. Brazil's real had lost nearly 2 percent over the past three sessions, tracking a global rise in the dollar driven by expectations for higher interest rates in the world's largest economy. Traders such as Glauber Romano at Sao Paulo brokerage Intercam said Tuesday's backtrack was not linked to any specific news event, but rather a natural market correction. Brazil investors also considered poll numbers that showed President Rousseff's approval rating hovering in the single-digits. Meanwhile, the number of respondents who favor Rousseff's impeachment over a massive kickback scandal at state-run oil company Petroleo Brasileiro SA rose to 62.8 percent from 59.7 percent four months ago. Traders said the poll numbers were mostly expected, though Petrobras shares erased early losses shortly after their release. The shares later swung back into negative territory as investors took quick profits. Shares of the troubled company have seen downward pressure in recent sessions due to a decline in global oil prices. Some investors hope, however, that a Rousseff impeachment could eventually lead to a new management team operating under less political influence. Key Latin American stock indexes and currencies at 1842 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 941.03 0.6 -2.18 MSCI LatAm 2430.28 0.28 -11.15 Brazil Bovespa 51341.68 -0.5 2.67 Mexico IPC 45454.12 -0.25 5.35 Chile IPSA 3913.75 0.03 1.63 Chile IGPA 18999.39 -0.07 0.68 Argentina MerVal 12014.539 0.27 40.05 Colombia IGBC 9855.96 -1.34 -15.29 Venezuela IBC 15001.21 -0.82 288.76 Currencies daily % YTD % change change Latest Brazil real 3.1665 1.05 -16.07 Mexico peso 15.991 0.12 -7.80 Chile peso 651 -0.27 -6.85 Colombia peso 2764.38 -0.19 -13.62 Peru sol 3.1811 0.00 -6.35 Argentina peso 9.1550 -0.03 -6.61 (interbank) Argentina peso 15.04 -3.26 -6.91 (parallel) (Reporting by Asher Levine; Editing by Meredith Mazzilli)
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