EMERGING MARKETS-Brazil real up as concerns over cenbank action fade; stocks rise
By Bruno Federowski SAO PAULO, Aug 15 (Reuters) - The Brazilian real strengthened on Monday after an official told Reuters there was not much the government could do to halt the currency's recent rally. The real had posted its biggest daily loss in two months on Friday after interim President Michel Temer said his government would "look for an equilibrium" in the exchange rate. But a senior member of the economic team told Reuters that the real should continue to strengthen, given high liquidity abroad and less political uncertainty at home. "Friday's reading, that the central bank could try to fight off strength in the real, is rapidly fading," said José Carlos Amado, a trader with Spinelli brokerage in São Paulo. The real has set one-year highs on optimism over Temer's pledges of fiscal restraint, while expectations of low U.S. interest rates sparked a worldwide rally in emerging market assets. The Mexican peso extended those gains on Monday to a three-month high at 18 per U.S. dollar as crude oil prices rose on speculation of coordinated action to limit global output. Markets in Colombia, Argentina and Chile were closed due to local holidays. Brazilian and Mexican equities also rose, supported by higher oil prices. Shares of state-controlled Brazilian oil company Petróleo Brasileiro SA provided the biggest boost to Brazil's benchmark Bovespa stock index, which rose to its highest level since September 2014. Stocks in Braskem SA led the gains after Brazil's largest petrochemical company named Everson Bassinello as its new head of compliance. Braskem has sought to improve governance amid corruption charges as part of a sweeping graft probe involving government officials and executives at major companies. Key Latin American stock indexes and currencies at 1530 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 916.91 0.75 14.6 MSCI LatAm 2526.77 0.95 36.78 Brazil Bovespa 58815.70 0.88 35.68 Venezuela IBC 12435.81 0.29 -14.75 Currencies daily % YTD % change change Latest Brazil real 3.1639 0.62 24.75 Mexico peso 18.0140 1.41 -4.35 Peru sol 3.31 0.12 3.14 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Lisa Von Ahn)
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