EMERGING MARKETS-Brazil's real holds steady after protests

lunes 17 de agosto de 2015 14:37 GYT
 

SAO PAULO, Aug 17 (Reuters) - The Brazilian real
  was little changed on Monday after anti-government
protests on Sunday did little to sway investor sentiment over
the political risk outlook in Latin America's largest economy.
    Other currencies in the region weakened slightly, though
Chile's peso saw a nearly 1 percent loss against the
dollar, partly due to a 1 percent fall in the price for copper
, the country's main export. 
    Brazil's real fluctuated in early trading before settling
near the 3.48 per dollar level by the mid-afternoon, nearly
unchanged from Friday's close.
    Hundreds of thousands of Brazilians protested against
President Dilma Rousseff on Sunday, with many calling for her
impeachment. A worsening economic outlook and an ongoing
corruption scandal involving state-run oil producer Petrobras
has dragged Rousseff's approval rating into the single digits.
    Investors are concerned that Rousseff's loss of support
could jeopardize the government's efforts to enact the fiscal
austerity measures needed to ward off a sovereign credit
downgrade. 
    Traders said participation in the protests was in line with
expectations, offering little indication that the public's calls
for impeachment are growing. They also said uncertainty over
what comes next kept many on the sidelines. 
    "With no news, it's natural for the market to be more
cautious," said Jose Carlos Amado, a trader with brokerage firm
Spinelli in Sao Paulo.
    Nine of 10 economists surveyed by Reuters estimate that,
considering Brazil's economic fundamentals, the real is now
fairly priced at between 3.20 per U.S. dollar and the current
level of 3.50. The currency has weakened 24 percent against the
dollar this year alone. 
    Brazil's Bovespa stock index edged slightly lower.
    Shares of homebuilder MRV Engenharia e Participacoes SA
 shot up 4.4 percent, however, after the company
reported better-than-expected quarterly earnings and projected
strong performance in coming quarters. 
    
    Key Latin American stock indexes and currencies at 1820 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        854.01    -1.14    -9.67
                                               
 MSCI LatAm                  2143.35    -0.38   -21.13
                                               
 Brazil Bovespa           47350.3241    -0.33    -5.31
                                   8           
 Mexico IPC                  43926.3     0.41     1.81
                                               
 Chile IPSA                  3790.23    -0.24    -1.58
                                               
 Chile IGPA                 18491.02    -0.12    -2.01
                                               
 Argentina MerVal          11452.989     -1.9    33.50
                                               
 Colombia IGBC               9707.21    -0.44   -16.57
                                               
 Venezuela IBC               15090.7    -1.84   291.08
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.4803     0.06   -23.64
                                               
 Mexico peso                 16.4034    -0.16   -10.12
                                               
 Chile peso                   689.75    -0.80   -12.08
                                               
 Colombia peso                  2995    -0.20   -20.27
 Peru sol                     3.2441    -0.12    -8.17
                                               
 Argentina peso               9.2400    -0.03    -7.47
 (interbank)                                   
                                               
 Argentina peso                15.05    -0.53    -6.98
 (parallel)                                    
                                               
 

    

 (Reporting by Asher Levine and Bruno Federowski; Editing by
Meredith Mazzilli)