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