EMERGING MARKETS-Latam currencies sink on oil prices, Brazil swaps outlook

viernes 28 de noviembre de 2014 12:08 GYT

SAO PAULO, Nov 28 (Reuters) - Latin American currencies
weakened sharply on Friday after a drop in oil prices weighed on
the economic outlook for petroleum-producing countries, while
Brazil investors kept their eye on possible modifications to the
central bank's currency intervention program. 
    OPEC decided not to cut output at a Thursday meeting,
driving Brent crude oil prices to a four-year low on
Friday and reinforcing expectations for a global oil-supply
    The decision hurt the currencies of countries such as
Colombia, Brazil and Mexico, all of which are oil exporters.
    Colombia's peso posted the sharpest loss in the
region, weakening about 2 percent against the dollar to its
lowest point in over five years.
    "The key question is whether or not the Colombian peso will
continue its depreciation," wrote Nomura analyst Mario Castro in
a client note. "The answer is yes, in our view. The key is the
rapid deterioration of Colombia's balance of payments."
    Mexico's peso weakened for the fifth straight day and
was set to close the session with its worst weekly drop in over
a year.
    Brazil's currency, the real, notched its biggest
one-day decline in over three weeks. 
    Traders said part of the real's losses were due to
uncertainty over the central bank's willingness to defend the
currency after the bank's president, Alexandre Tombini, said the
existing stock of currency swaps "significantly" satisfies
market demand for hedging protection.
    Meanwhile, Chile's peso sank after prices for copper
, the country's main export, touched their lowest since
    Key Latin American stock indexes and currencies at 1603 GMT:
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets       1004.38    -0.81     0.99
 MSCI LatAm                  3018.88    -2.14    -3.63
 Brazil Bovespa             54877.91     0.29     6.54
 Mexico IPC                 44362.53    -0.73     3.83
 Chile IPSA                  4001.92     0.52     8.18
 Chile IGPA                 19491.86     0.44     6.94
 Argentina MerVal            9737.52     -3.8    80.62
 Colombia IGBC              12049.38    -1.61    -7.82
 Peru IGRA                   15124.1    -0.75    -4.00
 Venezuela IBC               2991.17    -0.32     9.30
 Currencies                           daily %    YTD %
                                       change   change
 Brazil real                  2.5743    -1.80    -8.45
 Mexico peso                 13.8977    -0.98    -6.24
 Chile peso                    607.8    -1.17   -13.44
 Colombia peso                2210.1    -2.17   -12.58
 Peru sol                       2.92    -0.41    -4.35
 Argentina peso               8.5225     0.00   -23.82
 Argentina peso                 13.1     0.76   -23.66