March 2, 2020 / 7:59 PM / a month ago

EMERGING MARKETS-Latam FX attempt comeback, Colombian peso eyes best day in 7 months

    * Colombian peso gains as oil prices surge 
    * Brazil 2020 growth, FX outlook slip to new lows - cenbank
    * Brazil confirms second coronavirus case, Mexico its fifth 
    * U.S. dollar slips to one-month low

 (Updates prices, adds comments)
    By Susan Mathew and Shreyashi Sanyal
    March 2 (Reuters) - Latin American currencies gained on the
back of a weaker dollar on Monday, on rising bets for monetary
easing from the U.S. Federal Reserve, while Colombia's peso
jumped as prices of oil, the country's main export, surged.  
    The dollar slipped to a one-month low as traders bet the Fed
will deliver an interest rate cut when it meets on March 17-18,
and as an encouragement to central banks around the world to
follow suit. 
    "The dollar will remain vulnerable in the short term, as the
Fed will protect the stability of the financial system and will
be forced to cut rates aggressively," said Edward Moya, senior
market analyst at OANDA in New York.
    MSCI's index for Latin American currencies
rose 1%. The Colombian peso gained 1.94% against the
greenback, and was set for its best day in nearly seven months
as crude prices jumped over 5% on hopes of a deeper cut in
output by OPEC.          
    However, Brazil's real hovered near all-time lows hit in the
last session as worries over the economic fallout from the
coronavirus outbreak increased as the number of cases in both
countries rose over the weekend.
    Brazil reported its second case of the virus on Saturday,
while in Mexico, a fifth case was confirmed.
    Amid a report that Brazil's government is set to slash its
2020 growth forecast sometime this week, a central bank survey
of economists showed the 2020 outlook for Brazil's economic
growth, inflation and exchange rate slipping to new
    Mexico's peso reversed earlier losses to eke out
gains. A private survey showed the health of Mexico's
manufacturing sector improved slightly in February, following
three straight months of deterioration, as production and
exports grew.
    A virus-fueled rout intensified last week when the pace of
its spread heightened fears of a pandemic and a likely
subsequent global recession, wiping almost $6 trillion from
world stocks. 
    In emerging markets, portfolio managers pulled $9.7 billion
out in February on fears over the virus, preliminary data from
the Institute of International Finance showed on Monday.
    Regionally, Brazil stocks rose 1.7% led by a 17%
jump in Hypera Pharma after it said it signed a
contract to buy a portfolio of 18 pharmaceutical products from
Japan's Takeda for $825 million.    
    Key Latin American stock indexes and currencies at 1942 GMT:
     Stock indexes              Latest       Daily %
 MSCI Emerging Markets           1016.51           1.09
 MSCI LatAm                      2471.43           2.47
 Brazil Bovespa                105739.76           1.51
 Mexico IPC                     42076.40           1.82
 Chile IPSA                      4283.63           3.91
 Argentina MerVal               36370.06          3.994
 Colombia COLCAP                 1544.13          -0.35
        Currencies              Latest       Daily %
 Brazil real                      4.4873          -0.16
 Mexico peso                     19.5550           0.29
 Chile peso                        812.6           1.05
 Colombia peso                      3460           1.82
 Peru sol                          3.441           0.35
 Argentina peso (interbank)      62.2500          -0.06
 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Alistair Bell and Jonathan Oatis)
Nuestros Estándares:Los principios Thomson Reuters
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