January 30, 2017 / 3:21 PM / a year ago

EMERGING MARKETS-LatAm currencies up on optimism over U.S.-Mexico talks

By Bruno Federowski
    SAO PAULO, Jan 30 (Reuters) - Latin American currencies
strengthened on Monday on investors' optimism about meetings
between Mexican and U.S. officials on U.S. President Donald
Trump's plans to restrict ties between the neighboring
    Mexican Foreign Minister Luis Videgaray said the country
could conduct further bilateral meetings with the United States
in the coming days, after President Enrique Peña Nieto canceled
a planned encounter last week. 
    The Mexican peso strengthened as much as 1.1
percent to a one-month peak. The currency had weakened sharply
after Peña Nieto called off the trip, reacting to comments by
    Trump has pledged to build a wall along the Mexican border
and has demanded that the Mexican government pay for its costs.
He has also moved to renegotiate trade deals and slap high
tariffs on U.S. companies that have moved jobs south of the
    The Brazilian real strengthened around 1 percent,
tracking the rally in emerging market currencies.
    Trading was volatile as investors sought to influence the
January Ptax rate, a benchmark calculated by the central bank on
the last trading day of every month.
    Still, Brazil's benchmark Bovespa stock index fell
nearly 2 percent as traders booked profits from a recent rally
that took it to a five-year high.
    Blue-chip shares, such as miner Vale SA and
lender Itaú Unibanco Holding SA, subtracted the most
points from the index.
    Key Latin American stock indexes and currencies at 1510 GMT:
 Stock indexes                               daily %   YTD %
                                              change  change
 MSCI Emerging Markets               910.20    -0.62    6.22
 MSCI LatAm                         2533.75    -0.56    8.86
 Brazil Bovespa                    64762.56    -1.93    7.53
 Mexico IPC                        47061.94    -0.76    3.11
 Chile IPSA                         4238.69    -0.87    2.10
 Chile IGPA                        21163.18    -0.75    2.07
 Argentina MerVal                  18980.39    -1.22   12.19
 Colombia IGBC                     10220.99    -0.52    0.92
 Venezuela IBC                     28025.27     0.18  -11.61
 Currencies                                  daily %   YTD %
                                              change  change
 Brazil real                         3.1222     0.89    4.07
 Mexico peso                        20.7550     0.75   -0.05
 Chile peso                           648.6     0.24    3.41
 Colombia peso                      2937.82    -0.31    2.17
 Peru sol                             3.288     0.06    3.83
 Argentina peso (interbank)         15.9500    -0.31   -0.47
 Argentina peso (parallel)            16.78     0.12    0.24

 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
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