EMERGING MARKETS-Colombian peso drops on falling oil prices; Latam currencies steady
SAO PAULO, Dec 4 (Reuters) - The Colombian peso underperformed mostly flat Latin American currencies, tracking a decline in oil prices after news that OPEC was planning to maintain its production near record highs. The group decided to increase its collective output ceiling to 31.5 million barrels per day (bpd) from the previous 30 million, two OPEC sources told Reuters, despite persistent worries about oversupply. Oil prices fell as a result, contributing to a 1 percent drop in the Colombian peso . Other Latin American currencies, such as the Chilean peso and the Mexican peso, were nearly unchanged as investors brooded over stronger-than-expected U.S. jobs data. The employment numbers bolstered the case for a U.S. interest rate hike in December, which could draw investments away from emerging markets. In general, however, traders looked favorably upon signs of strength in the world's largest economy. "What matters now is the tone of the Fed, not if there will be a hike or not (in December)," said Pedro Tuesta, an economist with 4Cast in Washington D.C. The Brazilian real see-sawed, as investors continued to argue over the implications of the opening of impeachment proceedings against President Dilma Rousseff. Some traders bet that a change in government, although still a remote possibility, could help turn around an ailing economy, But many pointed out that political turmoil could delay the approval of fiscal austerity measures. Ratings agency Moody's Investors Service said on Thursday impeachment proceedings in Brazil may worsen short-term growth prospects. Standard & Poor's stripped the country of its coveted investment grade in September, arguing that political problems had muddled economic policy. Latin American stock indexes and currencies at 1510 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 811.24 -0.98 -14.33 MSCI LatAm 1951.12 -0.67 -27.98 Brazil Bovespa 45284.06 -2.39 -9.45 Mexico IPC 42976.46 -0.12 -0.39 Chile IPSA 3598.35 -0.19 -6.56 Chile IGPA 17787.61 -0.11 -5.74 Argentina MerVal 12822.029 -0.75 49.46 Colombia IGBC 8035.94 -1.2 -30.93 Venezuela IBC 12897.75 0.14 234.25 Currencies daily % YTD % change change Latest Brazil real 3.7310 0.46 -28.77 Mexico peso 16.6997 0.07 -11.71 Chile peso 701.4 -0.06 -13.54 Colombia peso 3180.05 -1.20 -24.91 Peru sol 3.3741 -0.18 -11.71 Argentina peso (interbank) 9.7200 0.00 -12.04 Argentina peso (parallel) 14.61 0.82 -4.18 (Repoting by Bruno Federowski; Editing by Frances Kerry)
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