EMERGING MARKETS-Latam currencies up as oil steadies in thin pre-holiday trade
By Bruno Federowski SAO PAULO, Dec 29 (Reuters) - Latin American currencies strengthened on Tuesday as oil prices steadied near 11-year lows, curbing a recent bout of risk aversion. A rebound in crude prices , which have been pressured lately by concerns over global oversupply, increased the demand for commodity-linked currencies such as the Mexican peso. The Colombian peso outperformed, rising 0.7 percent as investors braced for capital inflows stemming from the sale of a controlling stake in state electricity generator Isagen. Traders warned, however, that thin trading volumes could boost volatility ahead of the New Year's holiday. "Month, quarter and calendar year-end may make for a relatively busy few days ahead of the New Year as markets ease back after the Christmas break," Scotiabank analysts wrote in a client note. The Brazilian real seesawed as traders worried that new Finance Minister Nelson Barbosa could loosen fiscal rigor even as the government struggles to suppress rising inflation. Brazil's primary budget deficit swelled well above expectations in November, data showed on Tuesday. Latin American stock indexes and currencies at 1350 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 799.81 -0.06 -16.31 MSCI LatAm 1882.66 1.13 -31.75 Brazil Bovespa 44005.65 0.55 -12.00 Chile IPSA 3664.58 0.25 -4.84 Chile IGPA 18071.04 0.28 -4.24 Currencies daily % YTD % change change Latest Brazil real 3.8414 0.47 -30.82 Mexico peso 17.166 0.44 -14.11 Chile peso 706 0.17 -14.11 Colombia peso 3151 0.73 -24.21 Peru sol 3.4001 0.12 -12.38 Argentina peso (interbank) 12.9900 0.08 -34.18 Argentina peso (parallel) 14.27 -1.19 -1.89 (Reporting by Bruno Federowski; Editing by Nick Zieminski)
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