EMERGING MARKETS-Brazil real gains as traders test new central bank chief
By Bruno Federowski SAO PAULO, June 30 (Reuters) - The Brazilian real strengthened sharply for a third straight day on Thursday as traders tested the new central bank chief's willingness to allow the rally to continue. The real has gained about 6 percent since Monday's close as a rebound in global risk appetite drove the currency past 3.20 per U.S. dollar for the first time in almost a year. The move fostered speculation that the central bank could intervene in currency markets aiming to protect Brazilian exports, a rare bright spot in the country's deep recession. The newly-appointed central bank chief Ilan Goldfajn, who took office this month, has repeatedly stressed that the bank would use currency measures with "parsimony" if needed. "The real's rally caught a lot of people by surprise and many want to see how far it will go," said Glauber Romano, a trader at the Intercam brokerage. The currency outperformed its regional peers, which inched up after Bank of England Governor Mark Carney said the central bank may provide more stimulus following Britain's vote to exit the European Union. Mexico's peso was nearly flat ahead of a central bank policy meeting. The bank is expected to raise its key lending rate in a bid to support the peso, amid concerns about the inflationary impact of a weaker currency. Recovering global investor sentiment also lifted most Latin American stock indexes, with Brazil's and Mexico's bourses rising for a third straight day. Shares of Brazil's Eneva SA, which are not part of the country's benchmark index, shot up 35 percent following the end of the power producer's in-court debt restructuring. Key Latin American stock indexes and currencies at 1610 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 832.58 1.31 3.49 MSCI LatAm 2261.12 1.25 22.04 Brazil Bovespa 51356.78 0.7 18.47 Mexico IPC 45836.28 0.81 6.65 Chile IPSA 3984.26 0.14 8.26 Chile IGPA 19667.90 0.11 8.35 Argentina MerVal 14629.89 0.14 25.31 Colombia IGBC 9726.97 -0.32 13.80 Venezuela IBC 12702.00 -1.02 -12.93 Currencies daily % YTD % change change Latest Brazil real 3.2054 0.97 23.14 Mexico peso 18.4890 -0.05 -6.81 Chile peso 658 0.58 7.86 Colombia peso 2921.89 -0.22 8.47 Peru sol 3.2869 0.46 3.87 Argentina peso (interbank) 14.9350 0.30 -13.07 Argentina peso (parallel) 14.86 0.40 -3.97 (Reporting by Bruno Federowski; Editing by Brad Haynes and Diane Craft)
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