EMERGING MARKETS-Brazil's real falls as impeachment vote triggers profit-taking
By Bruno Federowski SAO PAULO, April 18 (Reuters) - Brazil's currency fell on Monday as investors took profits following a much-expected lower house vote to oust President Dilma Rousseff. Heavy central bank purchases of U.S. dollars from local investors also weighed on the currency, which sharply underperformed regional peers. The country's benchmark Bovespa stock index seesawed. The lower house approved the continuation of impeachment proceedings against Rousseff by a landslide. The process now goes to the Senate, where a ballot is expected early next month. A simple majority vote in the Senate would suspend Rousseff's presidency for as long as six months, pending a trial at the Senate. Bets on Rousseff's impeachment had recently driven Brazil's stocks and currency to their highest levels in over six months. "Now that the lower house vote has passed, many in the market will book profits as they wait for new developments," said Francisco Carvalho, head currency trader with broker-dealer BGC Liquidez in São Paulo. Many traders said a new government could help revive trust in the recession-ridden economy. The real jumped to as high as 3.47 reais to the U.S. dollar early in the morning, but reversed gains after the central bank stepped in. The central bank bought $3.4 billion worth of future dollar contracts through an instrument known as reverse currency swaps, which are designed to stem a rally in the currency. Shares of mining giant Vale SA gained 2.7 percent, leading increases in the Bovespa index. Limiting gains, state-controlled oil company Petróleo Brasileiro SA fell 3.5 percent in late Monday morning trading. A slump in oil prices reinforced a bearish sentiment in Brazilian stocks, traders said. Major oil producers failed to reach an accord to freeze global crude output at a meeting in Doha this weekend. Key Latin American stock indexes and currencies at 1440 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 844.72 -0.23 6.62 MSCI LatAm 2214.45 -0.35 21.45 Brazil Bovespa 53187.10 -0.08 22.69 Mexico IPC 45514.65 -0.05 5.90 Chile IPSA 3955.08 -0.18 7.47 Chile IGPA 19408.29 -0.14 6.92 Argentina MerVal 13128.89 -0.82 12.45 Colombia IGBC 9975.76 -0.32 16.71 Venezuela IBC 16230.53 0.61 11.26 Currencies daily % YTD % change change Latest Brazil real 3.5601 -1.06 10.87 Mexico peso 17.4565 0.56 -1.30 Chile peso 665.2 0.24 6.69 Colombia peso 3005 -0.27 5.47 Peru sol 3.2821 -0.25 4.02 Argentina peso (interbank) 14.1000 0.00 -7.93 Argentina peso (parallel) 14.89 0.60 -4.16 (Reporting by Bruno Federowski; Additional reporting by Paula Arend Laier; Editing by Andrea Ricci)
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