EMERGING MARKETS-Latam currencies rise as Fed seen tightening slowly
SAO PAULO, Nov 24 (Reuters) - Latin American currencies rose on Tuesday after U.S. economic growth data supported bets that the Federal Reserve will take a gradual approach to raising interest rates after an initial hike next month. Although higher U.S. rates could lure investments away from emerging markets, traders said they had largely adjusted to the idea of a rate increase in December and were focused instead on what would come next. "The idea is now that the Fed will not go crazy hiking rates. The transition will be smoother. A couple of hiccups and that's it," said Pedro Tuesta, an economist with research firm 4Cast. The U.S. government earlier on Tuesday upwardly revised its data to show the U.S. economy growing at a 2.1 percent annual pace. That could set up the economy to grow at least 2 percent in the second half of the year, around its long-term potential. The Colombian peso rose 0.9 percent, boosted by a rally in oil prices as the downing of a Russian-made fighter jet near the Syrian-Turkish border reignited tensions in the Middle East. The Mexican peso advanced 0.5 percent. The Brazilian real jumped 0.9 percent after the central bank announced it would sell as much as 500 million reais ($135 milion) in U.S. dollar repurchase agreements, the seventh such sale this month. The central bank usually steps up so-called repos at the end of the year to ease the scarcity of dollars due to seasonal demand. Trading volumes were thin in Brazil on the first day of a two-day central bank policy meeting. According to a Reuters poll of economists, the bank is likely to hold its benchmark rates at a nine-year high. Latin American stock indexes and currencies at 1525 GMT Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 838.78 -0.28 -12.05 MSCI LatAm 2053.34 -0.57 -24.29 Brazil Bovespa 47549.76228 -1.25 -4.91 Mexico IPC 44543.52 -0.53 3.24 Chile IPSA 3764.92 -1.07 -2.23 Chile IGPA 18504.69 -0.92 -1.94 Argentina MerVal 13503.13 0.4 57.40 Colombia IGBC 8564 -0.17 -26.39 Venezuela IBC 13067.79 0.26 238.65 Currencies daily % YTD % change change Latest Brazil real 3.7051 0.75 -28.27 Mexico peso 16.4748 0.46 -10.51 Chile peso 709.6 0.73 -14.54 Colombia peso 3070.07 0.72 -22.22 Peru sol 3.375 0.12 -11.73 Argentina peso (interbank) 9.6675 0.05 -11.56 Argentina peso (parallel) 15.2 -0.07 -7.89 (Reporting by Bruno Federowski Editing by W Simon)
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