EMERGING MARKETS-Brazil's real finds support in cenbank intervention

viernes 25 de septiembre de 2015 13:34 GYT
 

SAO PAULO, Sept 25 (Reuters) - The Brazilian real stabilized
on Friday following a session marked by extreme volatility as
the central bank stepped up market intervention to soothe
jittery investors.
    Other Latin American currencies were mixed, while most of
the region's stock markets were little changed.
    The real  fluctuated in early trading but
settled in positive territory by the afternoon. 
    The currency strengthened about 0.7 percent to 3.96 per
dollar, pushing it further away from the important 4 per dollar
psychological threshold crossed on Tuesday.
    The real hit its weakest level of all time earlier this
week, sparking fears among investors that the currency's decline
would continue apace.
    Thursday's plunge was halted late in the session after
central bank chief Alexandre Tombini signaled that the bank had
not ruled out selling part of the country's $371 billion foreign
reserves to calm the market. 
    That calm returned during Friday's session, aided by another
unscheduled swap auction held by the bank during morning
trading.
    "The market tests (the central bank) and it responds, and
that repeats," said a trader who requested anonymity because he
is not authorized to speak with journalists.
    The real has been in a tailspin this year, weakening nearly
33 percent against the dollar as economic recession, lower
commodities prices, expectations for higher interest rates in
the United States and political turbulence at home rattle
investors.
    "We still didn't get any fundamental change in the negative
picture for Brazil that would convince us that we have reached
an inflexion point," Brown Brothers Harriman analysts wrote in a
client note on Friday.
    Elsewhere in Latin America, Chile's peso slipped back
following a sharp gain in the previous session, while Colombia's
peso posted modest gains for the second straight day. 

    Key Latin American stock indexes and currencies at 1721 GMT:

 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets        789.71     0.51   -17.84
                                               
 MSCI LatAm                  1899.08     3.28   -32.59
                                               
 Brazil Bovespa           45160.3536    -0.29    -9.69
                                   4           
 Mexico IPC                 42582.97    -0.03    -1.30
                                               
 Chile IPSA                  3730.39     0.08    -3.13
                                               
 Chile IGPA                 18274.04     0.04    -3.16
                                               
 Argentina MerVal           9620.069     3.57    12.13
                                               
 Colombia IGBC               9293.48    -0.11   -20.12
                                               
 Venezuela IBC              12121.44    -1.16   214.13
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.9632     0.68   -32.95
                                               
 Mexico peso                  16.968    -0.60   -13.11
                                               
 Chile peso                      701    -0.39   -13.50
                                               
 Colombia peso                3081.3     0.64   -22.50
 Peru sol                     3.2231    -0.39    -7.57
                                               
 Argentina peso               9.4025     0.00    -9.07
 (interbank)                                   
                                               
 Argentina peso                16.02    -0.06   -12.61
 (parallel)                                    
                                               
 

 (Reporting by Asher Levine and Bruno Federowski; Editing by
Christian Plumb)