EMERGING MARKETS-Brazil real slips as central bank acts; Latam stocks, currencies rise

jueves 11 de agosto de 2016 11:52 GYT

By Bruno Federowski
    SAO PAULO, Aug 11 (Reuters) - The Brazilian real slipped on
Thursday as the central bank took stronger action to weaken the
currency, sidestepping gains in other Latin American markets.
    Brazil's central bank sold $750 million in reverse currency
swaps, which function like future dollar purchases from
    The bank had previously kept to a daily pace of selling $500
million in swaps as the real strengthened to fresh one-year
highs, past 3.15 to the greenback.
    "It looked like the real could approach 3 per U.S. dollar
soon but the change in the amount of swaps offered should at
least delay this," Banco Paulista head of currency trading
Tarcísio Rodrigues said.
    By intervening constantly, the central bank has reduced the
volume of traditional currency swaps in its balance sheet, from
more than $100 billion last year to below $50 billion currently.
    In the past, those instruments yielded sharp fiscal costs
whenever the real weakened.
    The real slipped on Thursday to 3.13 per U.S. dollar, but
the country's stock exchange advanced 1 percent on the
back of the bullish sentiment abroad.
    Traders also cheered positive updates from companies such as
energy and infrastructure company Ultrapar Participações SA
 and lender Banco do Brasil SA. 
    Other Latin American stocks and currencies also advanced as
strong U.S. jobs data kept alive optimism over global economic
strength, adding fuel to five days-long rally.
    The number of Americans filing for unemployment benefits
fell last week, remaining below 300,000 for 75 straight weeks.
    Key Latin American stock indexes and currencies at xxxx GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
 MSCI Emerging Markets              906.53      0.39   13.71
 MSCI LatAm                        2493.98      1.29   34.56
 Brazil Bovespa                   57516.05      1.05   32.68
 Mexico IPC                       48415.24      1.29   12.65
 Chile IPSA                        4133.49     -0.02   12.32
 Chile IGPA                       20432.85      0.01   12.57
 Argentina MerVal                 15360.24      0.09   31.56
 Colombia IGBC                     9737.37      0.12   13.92
 Venezuela IBC                    12400.02      1.18  -15.00
 Currencies                                  daily %   YTD %
                                              change  change
 Brazil real                        3.1355     -0.15   25.88
 Mexico peso                       18.2775      0.78   -5.73
 Chile peso                          644.5      0.67   10.12
 Colombia peso                      2911.5      0.91    8.85
 Peru sol                            3.305      0.06    3.30
 Argentina peso (interbank)        14.6250      0.38  -11.23
 Argentina peso (parallel)           15.25      0.39   -6.43

 (Reporting by Bruno Federowski; Editing by Jonathan Oatis)