EMERGING MARKETS-Latam currency gains ease on U.S. rate hike concerns
By Bruno Federowski SAO PAULO, Aug 16 (Reuters) - Latin American currencies gave back some gains on Tuesday after an influential U.S. Federal Reserve policymaker said U.S. interest rates could rise as soon as next month. In an interview with Fox Business Network, William Dudley, president of the Federal Reserve Bank of New York, said, "It's possible" to raise rates at the U.S. central bank's next policy meeting on Sept. 20-21, given signs of labor market tightening. Traders reacted by expanding bets on policy tightening this year, with a slightly better-than-even chance of a December move. Higher U.S. rates could draw funds away from high-yielding emerging market assets. Most Latin American currencies had previously strengthened on weak U.S. inflation figures and higher commodity prices. The Mexican peso rose to a three-month high of 17.9010 per U.S. dollar as prices of crude rose, before easing to 17.9850. Stock markets were mixed, with Brazil's benchmark Bovespa stock index dropping 0.6 percent on profit-taking after surging past 59.000 points for the first time since 2014 on Monday. A rise in shares of miner Vale SA limited losses in the index, however, supported by rising prices of iron ore. Key Latin American stock indexes and currencies at 1535 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 915.21 -0.07 15.33 MSCI LatAm 2515.35 -0.64 38.35 Brazil Bovespa 58760.88 0.00 35.55 Mexico IPC 48575.11 -0.25 13.02 Chile IPSA 4167.30 0.17 13.24 Chile IGPA 20592.76 0.16 13.45 Argentina MerVal 15458.02 1.92 32.40 Colombia IGBC 9842.48 1.2 15.15 Venezuela IBC 12268.65 -1.34 -15.90 Currencies daily % YTD % change change Latest Brazil real 3.1781 0.28 24.19 Mexico peso 17.9850 0.52 -4.20 Chile peso 649.7 -0.11 9.24 Colombia peso 2914 0.35 8.76 Peru sol 3.31 -0.06 3.14 Argentina peso (interbank) 14.6500 0.17 -11.38 Argentina peso (parallel) 15.3 0.26 -6.73 (Reporting by Bruno Federowski; Editing by Steve Orlofsky)
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