July 14, 2017 / 7:26 PM / a year ago

EMERGING MARKETS-LatAm currencies up after weak U.S. inflation, retail data

 (Adds detail on Mexican rate swaps, closing prices)
    By Bruno Federowski
    SAO PAULO, July 14 (Reuters) - Latin American currencies
strengthened on Friday after weaker-than-expected U.S. economic
data reduced bets on a third U.S. interest rate increase this
year, with Mexico's peso gaining to its strongest level against
the dollar in 14 months.
    U.S. consumer prices were unchanged in June and retail sales
fell for a second straight month, the latest in a run of mixed
reports that have kept traders skeptical about the Fed's stated
plan for one more rate hike this year and three in 2018.

    On Thursday, Fed Chair Janet Yellen said it would be "quite
challenging" for the United States to reach the 3 percent growth
target set by President Donald Trump.
    A slower pace of policy tightening could boost the allure of
high-yielding emerging market assets, driving up the value of
their currencies.
    The Mexican peso strengthened against the dollar
for the seventh straight day to reach its strongest since May
2016, while the Brazilian real firmed 0.8 percent.
    Yields on Mexican interest rate swaps rose after
the central bank chief said it is premature to talk about
reducing interest rates in the first six to nine months of 2018.

    Banco de Mexico Governor Agustin Carstens told Reuters that
a pause in interest rate increases is likely at the bank's next
monetary policy meeting.
    Brazil's benchmark Bovespa stock index posted its
fifth day of gains, with shares of engineering firm MRV
Engenharia e Participações SA the biggest riser after
posting solid growth in the second quarter.
    Shares of Cia Energética de Minas Gerais SA,
Brazil's No. 3 power utility, rose 3.3 percent after it closed a
deal to transfer stakes in Transmineiras to Transmissora Aliança
de Energia Elétrica, known as Taesa.
     Cemig, as the utility is known, jointly controls Taesa with
Brazilian investment fund Coliseu. The utility is looking to
sell assets to cut debt.
    Latin American stock indexes and currencies at 19:05 GMT:   
 Stock indexes                                 daily %     YTD %
                                      Latest    change    change
 MSCI Emerging Markets               1,048.51    +0.75    +20.70
 MSCI LatAm                          2,712.23    +0.92    +14.82
 Brazil Bovespa                     65,245.54    +0.10     +8.33
 Mexico S&P/BVM IPC                 50,906.08    -0.12    +11.53
 Chile IPSA                          4,992.28    +0.12    +20.26
 Chile IGPA                         24,925.69    +0.19    +20.22
 Argentina MerVal                   21,741.47    -1.07    +28.51
 Colombia IGBC                      11,045.25    -0.61     +9.06
 Venezuela IBC                     129,132.27    +0.81   +307.29
 Currencies                                    daily %     YTD %
                                                change    change
 Brazil real                            3.182    +0.80     +2.11
 Mexico peso                           17.548    +0.76    +18.22
 Chile peso                           657.200    +0.52     +2.05
 Colombia peso                      3,026.800    +0.63     -0.84
 Peru sol                               3.250    -0.22     +5.05
 Argentina peso (interbank)            16.840    +0.67     -5.73
 Argentina peso (parallel)             17.520    +0.46     -4.00
 (Reporting by Bruno Federowski and Michael O'Boyle; editing by
Grant McCool and Phil Berlowitz)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below