EMERGING MARKETS-Latam currencies weaken ahead of Fed as oil slumps

lunes 14 de diciembre de 2015 10:53 GYT

SAO PAULO, Dec 14 (Reuters) - Latin American currencies
mostly weakened on Monday as a drop in oil prices to financial
crisis-era lows dampened appetite for risky assets ahead of a
widely anticipated U.S. Federal Reserve meeting.
    The U.S. central bank is expected to raise benchmark rates
for the first time in almost a decade on Wednesday, which could
reduce the allure of assets in emerging markets. 
    However, investors seemed to have prepared for the move well
in advance and expected the bank to tighten policy slowly in the
months that follow.
    "To a large extent, this move, and some modest additional
tightening, is already priced into the markets," wrote
Scotiabank analysts in a client note. "So much will hinge on
what the Fed says in terms of market reaction."
    The Colombian peso dropped 0.9 percent as oil prices
resumed their slump amid concerns of a global glut. 
    Brazil's currency and stocks also slipped after
demonstrations demanding President Dilma Rousseff's ouster on
Sunday yielded a smaller attendance than earlier protests. The
Brazilian real weakened 0.8 percent, while the country's
Bovespa stock index fell 0.5 percent. 
    Traders have largely applauded the opening of impeachment
proceedings against left-leaning Rousseff, betting that a
political reckoning could jumpstart a recovery in Latin
America's largest economy. 
    Some analysts warn, however, that the optimism could be
short-lived. Moody's Investors Service said last week it could
downgrade the country's rating to junk because political
uncertainty may delay the approval of fiscal austerity measures.
    Latin American stock indexes and currencies at 1420 GMT:
 Stock indexes                                daily %   YTD %
                                               change  change
 MSCI Emerging Markets               771.88     -0.22  -19.11
 MSCI LatAm                         1848.15     -0.45  -31.94
 Brazil Bovespa                    45060.31     -0.45   -9.89
 Chile IPSA                         3540.55      0.21   -8.06
 Chile IGPA                        17523.67      0.17   -7.14
 Venezuela IBC                     15051.72      0.31  290.07
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                         3.9014     -0.75  -31.88
 Mexico peso                        17.3243      0.40  -14.89
 Chile peso                           711.1     -0.33  -14.72
 Colombia peso                      3350.51     -0.94  -28.73
 Peru sol                            3.3831     -0.12  -11.94
 Argentina peso (interbank)          9.7800     -0.08  -12.58
 Argentina peso (parallel)            14.81     -0.27   -5.47
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)