April 29, 2016 / 3:32 PM / 2 years ago

EMERGING MARKETS-LatAm currencies extend gains, Brazil's central bank intervenes

SAO PAULO, April 29 (Reuters) - Latin American currencies
extended their gains for a fourth day on Friday on dovish signs
from the Federal Reserve, prompting the Brazilian central bank
to step up intervention to halt a surge of the real that hit an
eight-month high.
    Brazil's central bank offered up to $2.5 billion in reverse
currency swaps in three auctions after the real hit 3.45 per
dollar. It was the first central bank intervention in a week.
    Other Latin American currencies also strengthened, with the
Mexican peso up nearly 1 percent at a four-month high
after better-than-expected preliminary GDP data.
    "The dollar trend remains bearish. The (Brazilian) central
bank came in and it continued to fall (against the real)
anyway," said Glauber Romano, trader at brokerage Intercam.
    The dollar index, a measure of the greenback's value against
a basket of currencies, was on course for its third consecutive
monthly decline, something not seen for five years. Investors
have pared their bets on multiple interest rate hikes this year
after the U.S. economy nearly ground to a halt in the first
    Latin American stock markets were also positive, with the
broader MSCI Latin American stock index up more
than 0.5 percent, as commodities prices gained.
    Shares of Mexican media group Televisa SAB 
jumped more than 5 percent after the company reported solid
sales growth despite a 59-percent drop in its first-quarter
    A sharp drop in shares of planemaker Embraer SA 
capped gains in Brazilian stocks. Shares of the world's
third-largest commercial jet maker fell more than 5 percent
after a decline in profit margins in the first quarter.

    Key Latin American stock indexes and currencies at 1503 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            840.43     -0.43      6.29
 MSCI LatAm                      2298.58      0.64     24.82
 Brazil Bovespa                 54311.12         0     25.29
 Mexico IPC                     45618.00       0.2      6.14
 Chile IPSA                      4009.24     -0.33      8.94
 Chile IGPA                     19680.01     -0.29      8.42
 Argentina MerVal               13871.79      0.96     18.81
 Colombia IGBC                  10029.48     -0.53     17.34
 Venezuela IBC                  15654.76         0      7.31
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.4507      1.31     14.38
 Mexico peso                     17.1310      0.77      0.58
 Chile peso                        660.5      0.00      7.45
 Colombia peso                      2848      0.91     11.28
 Peru sol                         3.2669      0.28      4.50
 Argentina peso (interbank)      14.2625      0.61     -8.97
 Argentina peso (parallel)         14.54      1.17     -1.86
 (Reporting by Flavia Bohone; Writing by Silvio Cascione;
Editing by Frances Kerry)
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