EMERGING MARKETS-Latam currencies strengthen as oil recovers ahead of Fed

martes 15 de diciembre de 2015 19:15 GYT
 

(Adds historic comparison for Mexican peso; updates prices
throughout)
    SAO PAULO, Dec 15 (Reuters) - Latin American currencies
strengthened on Tuesday after a rise in oil prices rekindled
demand for risky assets as the U.S. Federal Reserve began a
widely anticipated two-day policy meeting.
    Traders expect the U.S. central bank will raise benchmark
interest rates for the first time in almost a decade, while
signaling that it will proceed slowly with further increases. 
    Though higher U.S. rates could pull investments away from
emerging markets, traders said market reaction will hinge on the
Fed's hints about what it will do next.
    The Colombian peso advanced more than 1 percent as
oil prices  recovered from near 11-year lows. The
Mexican peso rose about 1.2 percent, its biggest one-day
gain since October.
    The Brazilian real strengthened 0.25 percent as
traders considered the implications of the latest developments
in a sweeping corruption probe.
    Brazilian police searched the homes of Lower House Speaker
Eduardo Cunha and other politicians on Tuesday as part of an
investigation of a bribery scandal stemming from state-run oil
company Petroleo Brasileiro SA. 
    Cunha has played a pivotal role in efforts to impeach
left-leaning President Dilma Rousseff, which has been cheered by
traders. However, his rift with Rousseff has hampered the
approval of austerity measures in Congress that credit-rating
agencies have called key for Brazil's investment-grade rating.
    
    Latin American stock indexes at 2238 GMT:
    
 Stock indexes                    Latest       Daily    YTD pct
                                               pct      change
                                               change   
                                                               
 MSCI Emerging Markets                 779.41     1.06    -18.5
 MSCI LatAm                          1,869.22     1.65   -31.47
 Brazil Bovespa                     44,872.47     0.28   -10.27
 Mexico IPC                          42,905.2     2.39    -0.56
 Chile IPSA                          3,570.23     1.06    -7.29
 Chile IGPA                          17,648.2     0.89    -6.48
 Argentina MerVal                   12,307.13    -0.24    43.46
 Colombia IGBC                       8,184.36      2.9   -29.66
 Venezuela IBC                      14,471.11    -0.05   275.02
 
 (Reporting by Bruno Federowski; Additional reporting by
Alexandra Alper; Editing by Nick Zieminski and Leslie Adler)