EMERGING MARKETS-Mexico peso hits all-time low on oil, global growth worries

jueves 11 de febrero de 2016 10:47 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 11 (Reuters) - The Mexican peso hit a record
low on Thursday as a lingering slump in oil prices and concerns
over global growth drove investors away from riskier assets.
    Worried that lower crude prices and weakness in world No. 2
economy China could have lasting effects on the global economy,
investors have been unwinding trades that sought to profit from
high interest rates in emerging markets.
    The Mexican peso has been a major victim as many investors
use the highly liquid currency to hedge against Latin American
assets in general.
    The peso slumped for a sixth day, to an all-time
low of 19.174 per U.S. dollar. Bets that financial turmoil will
not derail the U.S. Federal Reserve's plan to increase rates
later this year also weighed on sentiment.
    Fed Chair Janet Yellen said on Wednesday the U.S. central
bank will proceed with "gradual" rate hikes despite pressure
stemming from abroad. 
    Brazil's currency and stocks dropped, also
hit by worries that the government could loosen fiscal policy to
fight a deepening economic recession despite double-digit
inflation.
    "There is no room for fiscal flexibility given the current
conditions of the Brazilian economy," said Silvio Campos Neto,
an economist at Tendências consultancy in São Paulo.
    Shares of Cielo SA dropped almost 6 percent after
Reuters reported that rival Elavon do Brasil could be fully sold
to a holding company controlled by Banco Bradesco SA 
and Banco do Brasil, Cielo's controlling
shareholders. 
    
    Latin American stock indexes and currencies at 1430 GMT:
    
 Stock indexes                               daily %    YTD %
                                              change   change
                                  Latest              
 MSCI Emerging Markets               714.20    -2.24       -8
 MSCI LatAm                         1675.51    -2.26    -6.32
 Brazil Bovespa                    39434.55    -2.33    -9.03
 Chile IPSA                         3646.75    -0.79    -0.91
 Chile IGPA                        17928.29    -0.73    -1.23
 Argentina MerVal                  11041.67    -2.68    -5.43
 Venezuela IBC                     14588.58     0.04     0.00
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.9740    -0.99    -0.68
 Mexico peso                        19.1300    -1.02    -9.93
                                                      
 Chile peso                           714.4    -0.21    -0.66
 Colombia peso                         3437    -1.35    -7.79
 Peru sol                            3.5131    -0.20    -2.82
 Argentina peso (interbank)         14.5000     0.00   -10.47
                                                      
 Argentina peso (parallel)             14.2     0.42     0.49
                                                      
 
 (Reporting by Bruno Federowski; Additional reporting by Paula
Arend Laier; Editing by Bernadette Baum)