EMERGING MARKETS-Mexico peso slips on Fed jitters, other Latam FX firms
MEXICO CITY, Nov 20 (Reuters) - Mexico's peso slipped on Thursday as investors bet that the Federal Reserve was on course to start raising U.S. interest rates next year, while other Latin American currencies edged back from steep losses in the last session. Mexico's peso dipped 0.14 percent on top of a sharp fall on Wednesday after minutes from the last Fed meeting showed policymakers shied away from highlighting financial market volatility and a weakening global economy. The minutes reinforced market expectations that the Fed will hike interest rates after the first half of 2015. Latin American currencies have been pushed to multi-year lows this year amid expectations that higher U.S. interest rates will reverse a tide of investment that flooded into emerging markets in recent years, seeking higher yields. Mexico's peso is trading close to a 2-1/2 year low it hit earlier this month. Chile's peso firmed 0.32 percent on Thursday, but it was still trading near a more than 5 year low it hit in September. Peru's sol also edged stronger. Brazilian financial markets were closed for a holiday. The Brazilian real was supported on Wednesday by speculation that President Dilma Rousseff might appoint a market-friendly name to head the country's finance ministry. Mexican and Chilean stocks were little changed on Thursday. Stocks around Latin America have been slumping off highs since September amid signs of weaker global growth. Key Latin American stock indexes and currencies at 1930 GMT: Stock indexes daily % YTD % Latest change change MSCI LatAm 2,997.08 0.17 -6.52 Brazil Bovespa 53,402.81 closed 3.68 Mexico IPC 44,131.86 0.03 3.28 Chile IPSA 3,972.94 -0.06 7.47 Chile IGPA 19,333.84 -0.03 6.07 Argentina MerVal 9,657.50 0.76 79.14 Colombia IGBC 12,797.77 -0.25 -2.09 Peru IGRA 15,226.96 0.59 -3.34 Venezuela IBC 2,896.80 1.84 5.85 Currencies daily % YTD % change change Latest Brazil real 2.5718 closed -8.36 Mexico peso 13.6425 -0.18 -4.49 Chile peso 598.9000 0.32 -12.16 Colombia peso 2156.9000 0.11 -10.43 Peru sol 2.9230 0.07 -4.45 Argentina peso 8.5125 0.03 -23.73 (interbank) Argentina peso 13.4500 0.74 -25.65 (parallel) (Reporting by Michael O'Boyle; Editing by Chizu Nomiyama)
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