EMERGING MARKETS-Latam currencies rally on oil rebound, stimulus bets
By Bruno Federowski SAO PAULO, Jan 22 (Reuters) - Latin American currencies rallied on Friday as a rebound in oil prices and bets on new economic stimulus in the euro zone rekindled global risk appetite. A cold snap across the United States and Europe raised expectations of more demand for heating oil, lifting crude prices from 12-year lows. Comments by European Central Bank President Mario Draghi hinting at fresh stimulus also helped investor sentiment. The Mexican peso and the Colombian peso strengthened over 1 percent. Both countries are major oil producers. The Brazilian real also got a lift from higher commodity prices, advancing 1.1 percent after closing the previous session at an all-time low. Traders remained cautious, however, following an unexpected central bank decision on Wednesday to leave interest rates stable. "Although we do not believe today's relief will last, it should be enough to end the week on a positive note," Guide Investimentos analysts wrote in a client note. The Argentine peso underperformed, weakening 0.7 percent ahead of a meeting on Feb. 1 between government officials and U.S. holdout creditors. President Mauricio Macri said on Friday he hoped to reach a settlement early this year, although negotiations have not progressed much. Latin American stock indexes and currencies at 1430 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 710.46 3.19 -13.3 MSCI LatAm 1613.9 1.94 -13.48 Brazil Bovespa 38241.40 1.39 -11.78 Chile IPSA 3531.25 1.63 -4.05 Chile IGPA 17487.18 1.43 -3.66 Argentina MerVal 10289.22 4.78 -11.87 Venezuela IBC 14452.36 -0.28 274.54 Currencies daily % YTD % change change Latest Brazil real 4.1195 1.09 -35.49 Mexico peso 18.3999 1.79 -19.87 Chile peso 713.2 1.61 -14.97 Colombia peso 3266 1.59 -26.88 Peru sol 3.4451 0.06 -13.53 Argentina peso (interbank) 13.7100 -0.73 -37.64 Argentina peso (parallel) 14.31 0.28 -2.17 (Reporting by Bruno Federowski Editing by W Simon)
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