EMERGING MARKETS-Latam stocks, currencies mixed on uncertainty over Fed
By Bruno Federowski SAO PAULO, Sept 14 (Reuters) - Latin American stocks and currencies were mixed on Wednesday as uncertainty over the timing of the next U.S. interest rate increase and volatility in crude prices kept investors on edge. Market expectations about U.S. monetary policy have been through a roller coaster over the last few weeks as traders sought to decipher contradictory comments by Federal Reserve policymakers and the implications of weak economic data. Traders hope the Fed will offer more clarity following its policy meeting next week, when it is expected to leave rates unchanged. Concerns that other major central banks, such as the European Central Bank and the Bank of Japan, could be close to reducing their monetary support also weighed on investor sentiment. A spike in crude prices following a surprise draw in U.S. oil stocks briefly boosted demand for currencies from commodity exporters. But the move lost steam, with the Mexican peso weakening to a three-month low. In Brazil, recent volatility led the central bank to reduce the amount of reverse currency swaps it sells on a daily basis to 5,000 from 10,000. Reverse currency swaps function like future dollar purchases from investors and are typically used to weaken the Brazilian real. Key Latin American stock indexes and currencies at 1520 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 884.86 -0.13 11.57 MSCI LatAm 2306.28 -0.55 26.74 Brazil Bovespa 57018.69 0.35 31.53 Mexico IPC 45862.77 -0.63 6.71 Chile IPSA 4066.16 0.05 10.49 Chile IGPA 20212.07 -0.06 11.35 Argentina MerVal 15612.49 0.59 33.72 Colombia IGBC 10123.38 0.37 18.44 Venezuela IBC 12033.78 0.02 -17.51 Currencies daily % YTD % change change Latest Brazil real 3.3304 -0.44 18.51 Mexico peso 19.2185 -0.71 -10.35 Chile peso 675.4 0.41 5.08 Colombia peso 2975.79 -0.03 6.50 Peru sol 3.398 0.21 0.47 Argentina peso (interbank) 15.0400 -0.27 -13.68 Argentina peso (parallel) 15.33 0.26 -6.91 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
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