EMERGING MARKETS-Colombian peso leads Latam FX gains on dovish Fed
(Recasts with Colombian peso gains, updates prices) BRASILIA, April 28 (Reuters) - Colombia's peso surged to nearly a six-month high on Thursday as Latin American currencies gained after weak U.S. GDP numbers added to expectations that the Federal Reserve will not quickly raise interest rates. The Colombian peso was the best performer, up 2 percent, helped by an increase in the price of oil, a major export for the country. The Brazilian real and Mexican peso also gained, with the real rising 0.7 percent and the peso 0.3 percent. Disappointing earnings limited gains in Brazilian stocks though. The Bovespa index slipped 0.3 percent as banks and consumer-related companies missed profit expectations in the midst of a deep recession. The Mexican stock index was down 0.9 percent. Shares of Carlos Slim's America Movil tumbled 11.2 percent in its biggest one-day percentage drop in eight years, after it reported on Wednesday that profit plunged more than 40 percent in the first quarter. The Fed kept interest rates at 0.25 percent on Wednesday and it acknowledged that economic growth has slowed. That was confirmed on Thursday by data showing the U.S. economy grew at a 0.5 percent annual rate in the first quarter. Investors read the Fed's message as a signal that the bank might refrain from raising rates twice this year. The dollar fell against most currencies in Latin America and other emerging markets. "The Fed's dovish tone weakens the dollar," Octavio de Barros, chief economist at Brazilian bank Bradesco, said in a research note. He forecast the next U.S. rate increase would come in the second half of 2016. Key Latin American stock indexes and currencies at 2020 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 844.06 0.11 6.29 MSCI LatAm 2283.91 0.88 24.82 Brazil Bovespa 54311.97 -0.3 25.29 Mexico IPC 45528.93 -0.9 5.94 Chile IPSA 4022.59 1.08 9.30 Chile IGPA 19737.13 0.92 8.74 Argentina MerVal 13714.69 -0.19 17.47 Colombia IGBC 10083.03 -0.04 17.97 Venezuela IBC 15654.76 -0.32 7.31 Currencies daily % YTD % change change Latest Brazil real 3.4959 0.74 12.90 Mexico peso 17.2640 0.32 -0.20 Chile peso 660.5 0.94 7.45 Colombia peso 2874.02 2.03 10.27 Peru sol 3.276 0.28 4.21 Argentina peso (interbank) 14.3000 -0.73 -9.21 Argentina peso (parallel) 14.66 0.55 -2.66 (Reporting by Silvio Cascione; Additional reporting by Michael O'Boyle in Mexico City; Editing by Lisa Von Ahn and Steve Orlofsky)
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