EMERGING MARKETS-Latam currencies weaken as oil extends slump

miércoles 20 de enero de 2016 11:03 GYT

By Bruno Federowski
    SAO PAULO, Jan 20 (Reuters) - Latin American currencies
weakened on Wednesday as oil prices slumped to 13-year lows,
extending an emerging-market rout that began at the start of the
    Growing concerns about global oversupply drove U.S. crude
prices to their lowest since 2003, hurting demand for riskier
assets. Chinese stocks also fell as lower energy prices offset
expectations of new economic stimulus in the world's top
consumer of commodities. 
    The Mexican peso set an all-time low but pared losses
after data showed a surprising drop in U.S. consumer prices.
Some traders bet the numbers might prompt the U.S. Federal
Reserve to increase rates more slowly than originally expected
in coming months. 
    The Brazilian real dropped 0.5 percent, and the
country's Bovespa stock index fell to its lowest since
2009. Yields paid on short-term interest rate futures contracts
fell for the second straight day ahead of a central bank
interest rate decision after the market close.
    Traders continued to unwind bets that the bank would
increase its benchmark rate sharply to fight stubbornly high
inflation, despite a deepening recession. The bank's president
said on Tuesday that he would take into account a "significant"
reduction in the country's growth outlook. 
    "The fact is that the central bank's statement was
surprising," said economist Eduardo Velho of INVX Global
Partners in São Paulo. "Let's wait and see how it intends to
solve this dilemma."
    Latin American stock indexes and currencies at 1435 GMT:
 Stock indexes                                daily %   YTD %
                                               change  change
 MSCI Emerging Markets                694.04    -2.85  -10.04
 MSCI LatAm                          1582.59    -2.14  -11.62
 Brazil Bovespa                     37520.65    -1.41  -13.45
 Mexico IPC                         40257.02    -1.35   -6.33
 Chile IPSA                          3438.78    -1.17   -6.56
 Chile IGPA                         17095.51    -1.01   -5.82
 Argentina MerVal                     9583.3    -2.22  -17.92
 Currencies                                   daily %   YTD %
                                               change  change
 Brazil real                          4.0729    -0.49  -34.75
 Mexico peso                         18.3803    -0.55  -19.78
 Chile peso                            727.9    -0.37  -16.69
 Colombia peso                       3327.24    -0.56  -28.23
 Peru sol                             3.4421    -0.15  -13.45
 Argentina peso (interbank)          13.4200     0.07  -36.29
 Argentina peso (parallel)             14.33     0.28   -2.30
 (Editing by Lisa Von Ahn)