May 17, 2016 / 8:17 PM / 2 years ago

EMERGING MARKETS-Latam currencies gain as commodities rise for 3rd day

(Updates prices)
    BRASILIA, May 17 (Reuters) - Latin American currencies
advanced slightly against the dollar on Tuesday as commodities
prices rose for a third consecutive day, while a drop in banking
shares dragged Brazilian stocks down.
    The Peruvian sol and the Chilean peso 
strengthened the most among Latin American currencies, despite
U.S. inflation data suggesting an increasing likelihood of rate
hikes by the Federal Reserve later this year. 
    "Oil is up sharply again, which weakened the dollar against
emerging currencies after some positive data out of the U.S.
earlier today," said João Paulo de Gracia Correa, regional head
of currency trading at the Brazilian brokerage SLW.
    U.S. crude prices hit a seven-month high after traders
expected the United States to draw down oil stockpiles, and a
massive wildfire shifted north in Canada, continuing to threaten
oil supplies. 
    The Brazilian real gained only slightly in a volatile
session after Finance Minister Henrique Meirelles announced new
appointments for the economic team under the interim
administration of President Michel Temer.
    Itau Unibanco's chief economist Ilan Goldfajn will replace
Alexandre Tombini as central bank chief. Economists said his
nomination signals a bank less vulnerable to political
intervention and that could cut interest rates in the second
half of this year as inflation eases. 
    Brazil's benchmark Bovespa stock index fell more
than 1 percent, dragged down by financial shares such as those
of state-run lender Banco do Brasil SA, which fell
more than 4 percent. Meirelles said a new chief executive for
Banco do Brasil will be announced in coming days.
    Key Latin American stock indexes and currencies at 1955 GMT:
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets            801.49      0.51      0.41
 MSCI LatAm                      2145.84     -0.76     18.17
 Brazil Bovespa                 50877.64     -1.79     17.36
 Mexico IPC                     45864.94      0.05      6.72
 Chile IPSA                      3976.83      -0.4      8.06
 Chile IGPA                     19553.30     -0.35      7.72
 Argentina MerVal               12995.73     -1.56     11.31
 Colombia IGBC                   9995.74     -0.68     16.95
 Venezuela IBC                  14424.81     -6.18     -1.12
 Currencies                                daily %     YTD %
                                            change    change
 Brazil real                      3.4897      0.36     11.59
 Mexico peso                     18.2900      0.06     -6.15
 Chile peso                        688.8      0.70      2.94
 Colombia peso                    3011.7      0.41      4.97
 Peru sol                          3.311      0.57      3.02
 Argentina peso (interbank)      14.1300      0.05     -8.84
 Argentina peso (parallel)         14.61      0.48     -2.38

 (Reporting by Silvio Cascione, additional reporting by Anna
Yukhananov; Editing by Chris Reese and Cynthia Osterman)
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