EMERGING MARKETS-Brazil's real pares losses after protests

lunes 16 de marzo de 2015 14:13 GYT
 

SAO PAULO, March 16 (Reuters) - Brazil's currency rebounded
slightly on Monday on investor relief that massive street
protests over the weekend were peaceful.
    The Brazilian real  has weakened roughly 17.5
percent against the dollar this year and hit a nearly 12-year
low on Friday.
    Investors are cutting exposure to Brazilian assets on
concerns over a recession, a credit rating downgrade and the
fallout from a massive corruption scandal at state-run oil
producer Petroleo Brasileiro SA, known as Petrobras.
    Street protests over corruption and economic malaise took
place on Sunday in Brazil's major cities. Some traders took
short positions on Friday to protect against losses from
additional political uncertainty should the protests have ended
in violence, which did not occur. 
    Still, investors are unclear over what the economic impact
of louder and more widespread government disapproval will be,
especially as more fiscal tightening measures are implemented.  
    "Our view is that it will not change much in the short term,
and that the government will continue moving ahead with fiscal
tightening," wrote Brown Brothers Harriman analysts led by Marc
Chandler on Monday. 
    It is unclear how far the government is prepared to go with
the tightening once it starts to be felt by the population, the
note added.
    Elsewhere in Latin America, Colombia's peso hit its
weakest level in nearly 11 years as falling oil prices continue
to hammer the currency. Petroleum is Colombia's top export.
    Chile's peso was little changed, while Mexico's peso
 nearly erased the previous session's losses. 
    The outlook for all currencies in the region will hinge,
however, on the outcome of the U.S. Federal Reserve's next
policy statement, expected on Wednesday. Signals that the Fed
could raise interest rates sooner than previously expected will
likely drive emerging market currencies sharply lower. 
    Equities markets were little-changed, with Brazil's Bovespa
stock index and Mexico's IPC index both down about 0.15
percent. 
    
    Key Latin American stock indexes and currencies at 1731 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          940.82      0.13     -1.75
                                                  
 MSCI LatAm                    2354.94      0.65    -14.22
                                                  
 Brazil Bovespa               48521.41     -0.15     -2.97
                                                  
 Mexico IPC                   44002.29     -0.12      1.99
                                                  
 Chile IPSA                    3845.75       0.5     -0.14
                                                  
 Chile IGPA                   18785.09      0.41     -0.45
                                                  
 Argentina MerVal            10521.619      2.69     22.64
                                                  
 Colombia IGBC                 9787.56      -0.2    -15.88
                                                  
 Peru IGRA                    12529.29     -0.85    -15.31
                                                  
 Venezuela IBC                 4514.57     -0.76     17.00
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.2235      0.70    -17.56
                                                  
 Mexico peso                   15.4105      0.49     -4.32
                                                  
 Chile peso                     639.75     -0.12     -5.21
                                                  
 Colombia peso                 2681.49     -0.50    -10.95
 Peru sol                        3.097     -0.03     -3.81
                                                  
 Argentina peso                 8.7800      0.06     -2.62
 (interbank)                                      
                                                  
 Argentina peso                  12.83      1.01      9.12
 (parallel)                                       
                                                  
 
        

 (Reporting by Asher Levine and Bruno Federowski; editing by
Andrew Hay)