April 26, 2019 / 3:25 PM / 3 months ago

EMERGING MARKETS-Latam FX up vs softer dollar, Argentina's peso licks its wounds

    By Aaron Saldanha
    April 26 (Reuters) - Latin America currencies firmed against
the dollar on Friday, with a resurgent Argentine peso taking
back a chunk of ground lost during Thursday's turbulent session.
    The dollar slid after data showed a burst in first-quarter
U.S. economic growth was driven by temporary factors that are
likely to reverse in the coming quarters, providing pressured
developing world currencies a welcome reprieve.
    Argentina's peso firmed about 1.8% on returning risk
appetite as wild ructions seen earlier this week eased. Stocks
 rose 1.3%.
    A hedge fund trader looking at Argentina credit default
swaps (CDS) or Argentine dollar bonds would "want to grab onto
something tangible," which would support the reversal in the
market's momentum, said Roger K. Horn, senior EM strategist
at SMBC Nikko Securities America.
    The peso set a fresh record low on Thursday and CDS on the
country spiked as debt investors ran for the exits, due in part
to political uncertainty around elections later this year. The
hyper volatile currency was still set to post a weekly loss of
5.9%. 
    MSCI's index of Latin American stocks rose
0.5%, set to post a modest weekly gain. 
    Brazil shares were 0.2% lower on the day, but were
on course to close the week with a 1.8% gain largely on progress
made regarding the passage of a much-awaited pension reform
proposal. 
    State-run oil firm Petroleo Brasileiro SA saw its common
shares and preferred shares fall 0.6% and
1.2%, respectively, following sliding oil prices.
    Brazil's real surged 0.7%. Central Bank President
Roberto Campos Neto said that there is no imminent change
expected in the way the bank conducts monetary policy,
reiterating expectations for a medium-term economic recovery.

    The Mexican peso rose 0.6% in its best performance in
more than three weeks, while stocks dipped 0.3%.
    Colombia's peso firmed 0.2%, ahead of a central bank
review of borrowing costs later in the day. Most market
participants expect no change in interest rates.
    Colombian stocks fell 0.4%, with oil firm Ecopetrol
SA sliding 1.6% on soft oil prices.
    Chile's peso rose 0.3% tracking a gain in the price
of copper, the country's top export.    
            
    Latin American stock indexes and currencies at 1411 GMT
    
 Stock indexes                                       daily %
                                         Latest       change
 MSCI Emerging Markets                     1077.66      0.09
 MSCI LatAm                                2772.11      0.52
 Brazil Bovespa                           96336.26     -0.22
 Mexico IPC                               44889.93      -0.3
 Chile IPSA                                5168.41     -0.04
 Argentina MerVal                         29937.55      1.29
 Colombia IGBC                            12924.69     -0.41
                                                            
 Currencies                                          daily %
                                                      change
                                            Latest  
 Brazil real                                3.9342      0.53
 Mexico peso                               18.9110      0.55
 Chile peso                                  673.3      0.30
 Colombia peso                             3225.57      0.24
 Peru sol                                    3.318      0.24
 Argentina peso (interbank)                44.4000      1.58
                                                    
 
 (Reporting by Aaron Saldanha in Bengaluru; Editing by Andrea
Ricci)
  
Nuestros Estándares:Los principios Thomson Reuters
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