EMERGING MARKETS-Mexico peso falls, Colombia peso hits record low on oil woes
MEXICO CITY, Jan 25 (Reuters) - Mexico's and Chile's pesos weakened on Monday as falling oil prices weighed on demand for riskier assets while Colombia's peso sank to a record low, hurt by concerns that less crude income will force budget cuts. Crude prices resumed their slide after a strong two-day run last week, falling more than 4 percent on news that Iraq flooded a heavily over-supplied oil market with record output. Both Mexico and Colombia are major oil exporters. Mexico's peso shed 0.6 percent, heading back toward a record low hit last week, while Colombia's peso sank more than 2.6 percent to an all-time low. Colombian Finance Minister Mauricio Cardenas on Monday cut the government's oil price forecast, saying this could spell more austerity measures in order to meet the country's fiscal deficit goal. Chile's peso bid nearly 0.7 percent lower on a drop in prices for copper, the country's main export. Markets in Brazil, Latin America's biggest economy, were closed for a holiday. Emerging market currencies and stocks have been hammered so far this year amid concerns that slower growth in China could drag down global growth while worries of a supply glut have driven down oil prices. Mexico's peso has shed around 8 percent in January and is heading for its worst monthly loss against the dollar since May 2012. Analysts expect that Mexico could bolster its dollar auction program this week to support the peso. Latin American stock indexes and currencies at 1945 GMT Stock indexes daily YTD % Latest % change change MSCI Emerging Markets 716.02 0.75 -10.51 MSCI LatAm 1614.44 -0.38 -11.43 Brazil Bovespa 38031.22 0.83 -12.27 Mexico IPC 41601.71 -0.05 -3.20 Chile IPSA 3534.62 0.09 -3.96 Chile IGPA 17506.67 0.09 -3.55 Argentina MerVal 10373.40 0.42 -11.15 Colombia IGBC 8356.37 -0.83 -2.23 Venezuela IBC 14465.56 0.22 -0.84 Currencies daily YTD % % change Latest change Brazil real 4.1000 Closed -3.43 Mexico peso 18.5650 -0.61 -7.19 Chile peso 720.7 -0.69 -1.53 Colombia peso 3399.00 -2.62 -6.73 Peru sol 3.4641 -0.49 -1.45 Argentina peso (interbank) 13.7900 -0.44 -5.86 Argentina peso (parallel) 14.3 0.35 -0.21 (Reporting by Miguel Angel Gutierrez in Mexico City and Nelson Bocanegra in Bogota; Editing by Chizu Nomiyama)
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