EMERGING MARKETS-Latam stocks, currencies ease as Fed official urges rate hike
By Bruno Federowski SAO PAULO, Sept 23 (Reuters) - Most Latin American stocks and currencies fell on Friday as investors booked profits from a two-day rally after Boston Federal Reserve President Eric Rosengren said he believed rates should be raised gradually now. Rosengren was one of three members of the Federal Open Market Committee to dissent at this week's monetary policy meeting that left U.S. interest rates unchanged at a range of 0.25 percent to 0.50 percent. "It runs against the dovish talk" heard recently from the Fed, 4Cast economist Pedro Tuesta said. Fed policymakers reduced their forecasts of annual rate increases to two from three for 2017 to 2018 in the policy statement released after Wednesday's meeting, boosting high-yielding emerging market assets. The Mexican peso weakened 0.7 percent on Friday after strengthening during the previous two sessions, while the Colombian peso dropped about 1.2 percent. The two currencies also suffered the impact of a drop in crude prices, a key export and source of tax revenue for both Mexico and Colombia. Brazil's benchmark Bovespa stock index fell 0.29 percent, dragged down by blue-chip shares such as state-controlled oil company Petróleo Brasileiro SA and lender Itaú Unibanco Holding SA. But shares of pulp producers Fibria Celulose SA and Suzano Papel e Celulose SA rose after Itaú BBA raised its recommendation for the shares. Key Latin American stock indexes and currencies at 1630 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 917.28 -0.4 15.96 MSCI LatAm 2,400.42 -1.17 32.73 Brazil Bovespa 58,825.82 -0.29 35.70 Mexico IPC 47,629.03 -0.72 10.82 Chile IPSA 4,087.74 -0.3 11.07 Chile IGPA 20,343.18 -0.24 12.07 Argentina MerVal 16,353.63 -1.73 40.07 Colombia IGBC 9,971.68 -0.23 16.66 Venezuela IBC 12,504.12 -0.01 -14.29 Currencies Latest Daily YTD pct pct change change Brazil real 3.2288 -0.12 22.24 Mexico peso 19.7425 -0.65 -12.73 Chile peso 661 -0.27 7.37 Colombia peso 2,917.8 -1.09 8.62 Peru sol 3.353 -0.30 1.82 Argentina peso (interbank) 15.1500 0.13 -14.31 Argentina peso (parallel) 15.64 0.38 -8.76 (Reporting by Bruno Federowski, editing by G Crosse)
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