EMERGING MARKETS-Mexico peso, stocks down ahead of Fed decision
(Updates prices) SAO PAULO, Sept 19 (Reuters) - Mexico's peso and stocks slipped on Monday as investors showed caution ahead of policy meetings by the U.S. Federal Reserve and the Bank of Japan on Wednesday. A range of mixed economic figures and conflicting remarks by key Fed policymakers have kept investors guessing over the timing of the next U.S. rate hike. J.P.Morgan revised its forecasts this week to continue to show an initial increase in December 2016 followed by two hikes in 2017. Previously, the bank forecast three rate hikes next year. "We continue to anticipate that inflation will slowly move higher, though the decline in some measures of inflation expectations could trim some of the upside risk to that forecast," economist Mike Feroli wrote in a client note. In Japan, policymakers could well go in the opposite direction by easing policy, though conflicting reports on what it might do have stoked uncertainty. Mexico's peso slid by 0.33 percent, its fifth consecutive loss, to 19.685 per dollar, after hitting a record low on Friday of 19.777 per greenback on fears of a Fed hike following data showing higher-than-expected U.S. inflation. The peso has also been hurt by concerns that U.S. Republican Presidential hopeful Donald Trump, who has promised to build a wall on the U.S.- Mexico border and make Mexico pay for it, could win November elections. The IPC index fell just 0.11 percent to close at 45,871.04 points, led down by losses in Telecoms giant American Movil and Walmart de Mexico, which dropped 1.97 percent and 1.38 percent respectively. (Reporting by Bruno Federowski and Miguel Angel Gutierrez; Editing by Chris Reese and Sandra Maler)
© Thomson Reuters 2016 All rights reserved.