By Bruno Federowski
SAO PAULO, Dec 12 Latin American currencies
strengthened on Monday after OPEC and some other oil producers
agreed to curb output, supporting appetite for commodity-linked
Crude prices hit an 18-month high, boosting
currencies from oil exporters such as the Colombian and
The move reduced pressure for the Mexican central bank to
hike interest rates by more than 25 basis points this week, when
the U.S. Federal Reserve is also expected to tighten policy.
The U.S. central bank on Tuesday begins its last policy
meeting of the year, with a statement from Fed Chair Janet
Yellen due on Wednesday.
Traders will seek clues on the pace of rate increases in
coming months after U.S. President-elect Donald Trump's pledges
of fiscal spending fostered concerns of price pressures.
The Brazilian real strengthened 0.5 percent, lagging
most of its Latin American peers. Gains were limited by fears
that graft accusations against President Michel Temer could
derail votes on his fiscal austerity agenda.
The country's benchmark Bovespa stock index fell 1
percent despite a 2 percent rise in shares of state-controlled
oil company Petróleo Brasileiro SA.
Key Latin American stock indexes and currencies at 1415 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 874.70 -0.36 10.54
MSCI LatAm 2352.31 0.28 28.2
Brazil Bovespa 59953.62 -0.90 38.3
Mexico IPC 46913.47 1.19 9.16
Chile IPSA 4244.68 -0.56 15.34
Chile IGPA 21222.99 -0.46 16.92
Venezuela IBC 36350.63 -0.49 149.18
Currencies daily % YTD %
Brazil real 3.3550 0.52 17.65
Mexico peso 20.2200 0.82 -14.79
Chile peso 649.2 0.35 9.32
Colombia peso 2969.5 1.25 6.73
Peru sol 3.401 0.12 0.38
Argentina peso (interbank) 15.9600 0.25 -18.66
Argentina peso (parallel) 16.25 -0.43 -12.18
(Reporting by Bruno Federowski; Editing by Meredith Mazzilli)