EMERGING MARKETS-Brazil's real extends slide despite intervention
SAO PAULO, Sept 29 (Reuters) - Brazil's real extended its decline into a third session on Tuesday as traders, concerned about the outlook for commodities prices and local growth, shrugged off the central bank's efforts to boost the battered currency. Other currencies in the region were little changed, while stocks moved slightly higher. The real strengthened at the open following the central bank's announcement after Monday's close that it would sell up to $2 billion in the spot market on Tuesday with repurchase agreements and hold an unscheduled currency swap auction. Still, the real remained near its weakest level on record, hovering near 4.13 per dollar. "It seems that the Brazilian currency market is no longer accepting 'more of the same' when it comes to central bank auctions and is testing the bank for something stronger," Jefferson Luiz Rugik, a trader with Brazilian brokerage Correparti, wrote in a client note. Investors have been betting heavily against the real in the futures market, given that the economy is in recession, inflation exceeds 9 percent, government finances have deteriorated sharply and a ratings agency has lowered Brazil's debt to "junk" status. In addition, disappointing economic data from top trade partner China has weighed on the price of local commodity exports, putting an additional drag on the real, which has lost nearly 36 percent of its value against the dollar this year. Elsewhere, the Colombian and Mexican pesos both remained nearly flat, while the Chilean peso advanced slightly on higher prices for copper, the country's main export. In equities markets, Brazil's Bovespa stock index looked set to snap a seven-session slump, led by shares of the most widely traded banking and commodities companies, such as Banco Bradesco SA and state-run oil producer Petroleo Brasileiro SA, or Petrobras. Finance Minister Joaquim Levy said on Tuesday that Petrobras was taking the right steps to shore up its operations in the wake of a massive corruption investigation. Key Latin American stock indexes and currencies at 1400 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 775.82 -0.74 -18.27 MSCI LatAm 1829.72 -0.75 -32.41 Brazil Bovespa 44292.6659 0.76 -11.43 4 Mexico IPC 42033.68 0.33 -2.58 Chile IPSA 3662.79 0.27 -4.89 Chile IGPA 17982.01 0.24 -4.71 Argentina MerVal - - - Colombia IGBC 9152.78 -0.12 -21.33 Venezuela IBC 12129.27 -0.06 214.33 Currencies daily % YTD % change change Latest Brazil real 4.1192 -0.28 -35.49 Mexico peso 17.0607 0.08 -13.58 Chile peso 704.7 0.01 -13.95 Colombia peso 3120.5 0.00 -23.47 Peru sol 3.2351 0.00 -7.92 Argentina peso 9.4100 0.00 -9.14 (interbank) Argentina peso 15.96 0.63 -12.28 (parallel) (Reporting by Asher Levine and Bruno Federowski; Editing by Lisa Von Ahn)
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