EMERGING MARKETS-Latam currencies fall on China, oil; Mexican peso hits record low

viernes 11 de diciembre de 2015 10:49 GYT

SAO PAULO, Dec 11 (Reuters) - Latin American currencies
weakened on Friday after slides in the Chinese yuan and oil
prices sent investors scurrying for the safety of the dollar,
dragging the Mexican peso to a new record low.
    The yuan fell to its lowest level in more than four years,
raising expectations that Beijing could allow an even larger
depreciation as the economy shows growing signs of weakness.
    The move was followed by a slump in the Mexican peso 
to its all-time low, at 17.44 pesos per dollar. Also pressuring
the currency was a drop in crude prices  to their
lowest in seven years, amid concerns about global oversupply.
    Investors also braced for an expected U.S. interest rate
increase next week, which could pull investments away from
high-yielding emerging market assets. Some traders were
comforted, however, by signs that the bank will tighten monetary
policy slowly from then on.
    The Brazilian real fell 1.5 percent, hit by media
reports saying Finance Minister Joaquim Levy threatened to leave
his post if Congress lowered the country's fiscal target for
    Levy has spearheaded efforts to cut spending and raise taxes
in order to regain investor trust and fight a worsening
recession. Traders worried that his exit could herald a return
to the interventionist policies adopted during President Dilma
Rousseff's first term in office.
    Latin American stock indexes and currencies at 1425 GMT:
 Stock indexes                           daily %    YTD %
                                Latest    change   change
 MSCI Emerging Markets           774.77    -1.81   -17.49
 MSCI LatAm                     1882.14    -1.69   -29.81
 Brazil Bovespa                45749.55     0.26    -8.51
 Chile IPSA                     3558.15    -0.17    -7.60
 Chile IGPA                    17599.01    -0.15    -6.74
 Currencies                              daily %    YTD %
                                          change   change
 Brazil real                     3.8590    -1.59   -31.14
 Mexico peso                    17.3505    -0.86   -15.02
 Chile peso                       707.3    -0.50   -14.27
 Colombia peso                  3283.95    -1.18   -27.28
 Peru sol                        3.3761    -0.09   -11.76
 Argentina peso (interbank)      9.7625    -0.13   -12.42
 Argentina peso (parallel)        14.72     0.07    -4.89
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)