EMERGING MARKETS-Mexico peso weakens to 3-mth low as oil falls

miércoles 1 de junio de 2016 12:25 GYT

By Bruno Federowski
    SAO PAULO, June 1 (Reuters) - Latin American currencies
mostly weakened on Wednesday on the back of lower commodity
prices, with the Mexican peso nearing levels which triggered
central bank intervention earlier this year.
    The peso  fell as low as 18.6225 per U.S.
dollar, the weakest since Feb. 17, when the central bank sold
dollars directly to banks and unexpectedly raised its benchmark
interest rate to fight off currency speculators. 
    Wednesday's move came as prices of crude, a key
export and source of revenue, fell below $49 per barrel on
skepticism that major producers could agree to curb output.
    Prices of oil later pared losses after OPEC sources told
Reuters the group was likely to consider a new output ceiling at
a meeting on Thursday. 
    Oil-rich Colombia's peso weakened more than its peers
for a second day, after the central bank said on Friday it would
suspend dollar option sales aimed at cushioning the currency's
    The Brazilian real seesawed as traders remained
skeptical of the country's economic outlook even after a
smaller-than-expected economic contraction in the first quarter.
    Analysts pointed out the figures were propped up by an
increase in government spending, which should fade over the
following quarters.
    "With fiscal policy set to tighten over the second half of
the year, this prop to the economy will go," Capital Economics
analyst Neil Shearing wrote in a report.
    Interim President Michel Temer's government will seek
constitutional change to curb increases in public spending as
part of a series of measures meant to regain investor trust.
    The country's benchmark Bovespa stock index inched
up, supported by a rebound in shares of Bradesco SA.
    The stock fell 5 percent the day before after federal police
accused the bank's chief executive officer Luiz Carlos Trabuco
and two senior executives of plotting to avoid a 3 billion-reais
($832 million) tax fine. 
    Key Latin American stock indexes and currencies at 1610 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
 MSCI Emerging Markets               807.25    -0.02     1.68
 MSCI LatAm                         2033.55    -0.23    11.39
 Brazil Bovespa                    48541.71     0.14    11.98
 Mexico IPC                        45577.03     0.26     6.05
 Chile IPSA                         3925.54    -0.23     6.67
 Chile IGPA                        19350.26    -0.34     6.60
 Argentina MerVal                  12623.51    -0.45     8.12
 Colombia IGBC                      9584.36    -0.11    12.13
 Venezuela IBC                     15438.34     -0.4     5.83
 Currencies                                  daily %    YTD %
                                              change   change
 Brazil real                         3.6015     0.29     9.59
 Mexico peso                        18.5430    -0.42    -7.08
 Chile peso                             693    -0.22     2.41
 Colombia peso                      3116.97    -0.87     1.68
 Peru sol                            3.3819    -0.17     0.95
 Argentina peso (interbank)         13.9400     0.36    -6.87
 Argentina peso (parallel)            14.45     0.42    -1.25
 (Additional reporting by Paula Arend Laier; Editing by Bruno
Federowskii and Chris Reese)