18 de noviembre de 2016 / 23:47 / en un año

EMERGING MARKETS-Mexican peso extends losses on Trump woes

(New throughout, updates prices and market activity, adds
table)
    MEXICO CITY, Nov 18 (Reuters) - The Mexican peso and other
Latin American currencies weakened on Friday, as investors
worried that higher U.S. interest rates could sap demand for
emerging market assets.
     The peso lost nearly 1 percent to the dollar to
close at 20.63. 
    On Thursday, Mexico's central bank raised its key rate by 50
basis points to 5.25 percent. The market had bet on a hike of 75
basis points.
    Mexican central bank chief Agustin Carstens said on Friday
that Mexico could raise interest rates again before the end of
2016, but policymakers also do not want to raise borrowing costs
so high they constrict economic growth. 
    "You need to apply medicine, but you don't want to cause an
overdose," Carstens told local radio. "What we're trying to do
is reach a balance, which is not easy."
    The peso ended the week about 1 percent stronger after U.S.
president-elect Donald Trump softened certain campaign pledges
that have heightened uncertainty over economic growth in the
country. 
    The fact that the central bank delivered a more moderate
50-basis-point hike suggests policymakers are comfortable with
the peso's current levels, according to Alejandro Hardziej at
Swiss private bank Julius Baer. 
    Some investors are betting Trump will not take as hard a
line on trade and immigration as the one he campaigned on. If
that comes to pass, the peso could bounce back and ease
inflation pressures. 
    But the market is divided on whether the weak peso is a
buying opportunity. Societe Generale expects the peso to sink to
23 to the dollar.
    Remarks by Fed Chair Janet Yellen suggesting a December rate
increase was on track also weighed on demand for emerging market
assets, with concerns that heavy U.S. spending and lower taxes
under Trump would cause the peso to depreciate more. 
    In Brazil, the real strengthened 0.97 percent to
3.387 to the dollar in morning trading, reversing some of the
losses seen in since Trump's win.     
    Heavy central bank and National Treasury intervention in
currency and bond markets, seemed enough to stem the real's
bleeding, at least for now.
    Many analysts have singled out the real as among the
currencies least vulnerable to U.S. political developments,
citing expectations of fiscal reform under President Michel
Temer.
    Key Latin American stock indexes at 2200 GMT:
 Stock indexes                  daily   YTD %
                                    %  change
                     Latest    change  
 MSCI Emerging         844.51       0    6.35
 Markets                               
 MSCI LatAm           2262.78   -0.18   23.88
                                       
 Brazil Bovespa      59961.76    0.32   38.32
                                       
 Mexico IPC          44364.17   -1.24    3.23
                                       
 Chile IPSA           4185.78       0   13.74
                                       
 Chile IGPA          20935.63   -0.02   15.34
                                       
 Argentina MerVal    16385.12   -0.52   40.34
                                       
 Colombia IGBC        9694.79    0.15   13.42
                                       
 Venezuela IBC       26421.70   -0.81   81.12
                                       
                                             
 Currencies                     daily   YTD %
                                    %  change
                               change  
                       Latest          
 Brazil real           3.3809    0.97   16.62
                                       
 Mexico peso           0.0000  -0.97   -16.48
                                       
 Chile peso             678.5    -0.3    4.60
                                       
 Colombia peso         3181.2   -0.87   -0.38
                                       
 Peru sol               3.404    0.41    0.29
                                       
 Argentina peso       15.4700    0.10  -16.08
 (interbank)                           
                                       
 Argentina peso          15.8   -0.76   -9.68
 (parallel)                            
                                       
 
 (Reporting by Natalie Schachar and Michael O'Boyle; Editing by
David Gregorio)

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