EMERGING MARKETS-Mexico, Colombia peso up for 2nd day on higher yuan

lunes 15 de febrero de 2016 11:06 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 15 (Reuters) - Latin American currencies
advanced for a second day on Monday after China's central bank
allowed the yuan to strengthen, easing global concerns following
a week of deep risk aversion.
    Worries over global economic weakness and a continued slump
in oil prices hurt demand for emerging market assets last week
while Chinese markets were closed for the Lunar New Year
holiday. 
    Nevertheless, China's central bank fixed the yuan at its
highest rate this year and played down speculation that it could
adopt capital controls. Offshore rates for the yuan posted its
biggest rise since 2005, eliminating a gap with the onshore rate
that had stoked fears of capital outflows. 
    The move allayed concerns that a weaker yuan could generate
worldwide deflationary pressure, hampering the global economic
recovery. A stronger currency at the world's biggest consumer of
commodities could also boost trade with Latin American
countries, typically big exporters of basic products.
    The Mexican peso  and the Colombian peso
 strengthened after hitting all-time lows last week,
though trading volumes were thin due to a U.S. holiday. Both
currencies also benefited from a recovery in oil prices amid
speculation that OPEC could agree to cut production.
    However, analysts expected the relief to prove short-lived.
Colombia's peso should trade between 3,500 and 4,000 per U.S.
dollar over the following quarters, compared to about 3,400
currently, strategist Mario Robles at Nomura Securities said in
a client note.
    He expects the country's central bank to react by increasing
its benchmark rate by an additional 100 basis points, to 7.0
percent, seeking to fight growing inflation expectations.
    
    Latin American stock indexes and currencies at 1450 GMT:
 Stock indexes                                 daily %   YTD %
                                                change  change
                                     Latest             
 MSCI Emerging Markets                 725.65     2.03  -10.44
 MSCI LatAm                           1709.70     1.28   -7.75
 Brazil Bovespa                      40366.72      1.4   -6.88
 Mexico IPC                          42617.44     0.47   -0.84
 Chile IPSA                           3682.90     0.42    0.07
 Chile IGPA                          18099.22     0.37   -0.29
 Argentina MerVal                    11516.86     2.13   -1.36
 Colombia IGBC                        8826.20     0.31    3.26
 Venezuela IBC                       15082.74     2.57    3.39
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                                        
                                       Latest           
 Brazil real                           3.9945    -0.14   -1.19
 Mexico peso                          18.8550     0.29   -8.62
 Chile peso                             700.2     0.60    1.36
 Colombia peso                           3378     0.12   -6.18
 Peru sol                               3.504     0.06   -2.57
 Argentina peso (interbank)           14.8000    -0.47  -12.28
                                                        
 Argentina peso (parallel)              14.95     0.00   -4.55
                                                        
 
 (Reporting by Bruno Federowski; Editing by Diane Craft)