EMERGING MARKETS-Latam currencies extend gains on Fed caution

miércoles 30 de marzo de 2016 11:45 GYT
 

By Bruno Federowski
    SAO PAULO, March 30 (Reuters) - Most Latin American
currencies strengthened for a second day on Wednesday as traders
bet the Federal Reserve could take longer than expected to
increase U.S. interest rates.
    Fed Chair Janet Yellen said on Tuesday the U.S. central bank
should proceed cautiously in tightening policy. 
    Many investors had feared she could take a more hawkish tone
after a series of Fed policymakers endorsed a trajectory of at
least two rate increases this year.
    Fed funds futures implied traders now expected the Fed to
stand pat until the final quarter of 2016. 
    Brazilian politics remained under the spotlight after the
country's biggest political party split with the governing
coalition, sharply raising the chances of President Dilma
Rousseff's ouster. 
    "The chances of impeachment for Rousseff are about 90
percent. One way or another, the game is pretty much up for
her," Edwin Gutierrez, head of emerging market sovereign debt at
Aberdeen Asset Management, wrote in a client note.
    Many traders believe a change in government could help
rekindle investor trust in Latin America's biggest economy.
Rousseff's popularity remained close to historic lows, a poll
showed on Wednesday. 
    A central bank decision to sell only some of the reverse
currency swaps, which function like buying dollars in futures
markets, offered in an auction also helped lift the Brazilian
real.
    The country's benchmark Bovespa stock index rose,
supported by a rise in shares of state-controlled oil company
Petroleo Brasileiro SA. 
    Shares of Gol Linhas Aereas  slumped after
the airline posted a heavy fourth-quarter loss, weighed by weak
demand amid a deep economic crisis and high costs due to a
weaker local currency. 

    Key Latin American stock indexes and currencies at 1530 GMT:
 Stock indexes                                 daily %   YTD %
                                      Latest    change  change
 MSCI Emerging Markets                 835.55     2.54    2.61
 MSCI LatAm                           2189.73     2.69   16.54
 Brazil Bovespa                      52020.49     1.69   20.00
 Mexico IPC                          46228.24     0.72    7.56
 Chile IPSA                           3940.94     0.59    7.08
 Chile IGPA                          19296.34     0.55    6.31
 Argentina MerVal                    13145.67     1.67   12.60
 Colombia IGBC                        9702.62     1.08   13.52
 Venezuela IBC                       14836.63     0.77    1.70
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                       Latest           
 Brazil real                           3.6115     0.70    9.29
 Mexico peso                          17.2160     0.77    0.08
 Chile peso                             673.3     1.22    5.41
 Colombia peso                         3026.1     1.00    4.73
 Peru sol                               3.365     0.27    1.46
 Argentina peso (interbank)           14.6000     0.48  -11.08
                                                        
 Argentina peso (parallel)              15.28     0.72   -6.61
                                                        
 
 (Additional reporting by Paula Arend Laier; Editing by James
Dalgleish)