EMERGING MARKETS-Brazil's real fluctuates on policy outlook
SAO PAULO, Oct 1 (Reuters) - Brazil's currency fluctuated between slight gains and losses on Thursday as cautious investors await legislation that could have a major impact on the budget. Other Latin American currencies were mostly stronger, with the Colombian and Mexican pesos boosted by higher prices for oil. The Brazilian real swung in early trade though did not stray far from Wednesday's close of 3.96 per dollar. Brazil's Congress on Wednesday postponed for the second time a vote that could overturn vetoes by President Dilma Rousseff aimed at limiting public spending. Investors are watching the vote closely because a failure to improve Brazil's fiscal accounts could lead to further sovereign credit rating downgrades. "The political climate is still bad, despite Rousseff's reforms," wrote analysts at Sao Paulo brokerage Guide Investimentos in a client note, a reference to her attempts to appease rival parties with cabinet seats in exchange for their legislative support. Elsewhere in Latin America, Colombia's peso rose about 1 percent against the dollar, led by higher prices for petroleum, the country's main export. Oil prices gained on Thursday on worries about potential damage to oil installations from a hurricane headed for the U.S. East Coast. Latin American equities markets were mostly higher, with the MSCI Latin American stock index approaching its first two-day advance in more than two weeks. Brazil's Bovespa stock index rose for the third straight session, boosted by shares of commodities producers such as state-run oil producer Petroleo Brasileiro SA , known as Petrobras, and mining giant Vale SA . Key Latin American stock indexes and currencies at 1443 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 797.95 0.74 -17.18 MSCI LatAm 1909.57 0.79 -30.54 Brazil Bovespa 45295.1880 0.52 -9.42 7 Mexico IPC 42581.29 -0.12 -1.31 Chile IPSA 3696.73 0.31 -4.00 Chile IGPA 18105.3 0.27 -4.05 Argentina MerVal 9861.34 0.47 14.95 Colombia IGBC 9297.59 0.16 -20.09 Venezuela IBC 11880.5 0.06 207.89 Currencies daily % YTD % change change Latest Brazil real 3.9707 -0.16 -33.07 Mexico peso 16.818 0.60 -12.33 Chile peso 694.7 0.19 -12.71 Colombia peso 3054.6 1.05 -21.82 Peru sol 3.2251 0.21 -7.63 Argentina peso 9.4250 -0.05 -9.28 (interbank) Argentina peso 15.94 0.38 -12.17 (parallel) (Reporting by Asher Levine and Bruno Federowski; Editing by Grant McCool)
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