By Bruno Federowski and Paulina Osorio
SAO PAULO/MEXICO CITY, Feb 8 Mexico's peso
strengthened on Wednesday as investors bet that the country's
central bank would hike interest rates on Thursday and as the
dollar weakened on predictions that the U.S. Federal Reserve
would not raise rates.
The dollar eased on Wednesday, as investors cut bets on a
March rate hike by the Fed.
Mexico's peso closed up 0.72 percent at 20.4775 per U.S.
dollar. The country's central bank is expected to raise rates on
Thursday amid accelerating inflation fanned by a weak exchange
rate and a double-digit gasoline price hike, a Reuters poll last
In Brazil, the benchmark Bovespa stock index closed
almost 1 percent higher on the day.
Yields paid on interest rate futures fell earlier on
Wednesday after consumer price inflation slowed more than
expected last month, boosting rate cut bets there.
The official measure of Brazilian consumer prices rose 0.38
percent in January from December, the smallest increase for the
month since 1994.
The figures reinforced bets that the central bank will slash
the benchmark overnight lending rate to 13 percent, a cut of 75
basis points, at a meeting later this month.
Key Latin American stock indexes and currencies at 2310 GMT:
Stock indexes Latest Daily YTD pct
MSCI Emerging Markets 921.68 0.2 6.89
MSCI LatAm 2,545.30 1.06 8.74
Brazil Bovespa 64,835.40 0.99 7.65
Mexico IPC 46,921.71 0.41 2.80
Chile IPSA 4,267.33 0.22 2.79
Chile IGPA 21,292.87 0.21 2.69
Argentina MerVal 19,147.92 -0.24 13.18
Colombia IGBC 10,058.79 -0.7 -0.68
Venezuela IBC 28,274.57 0 -10.82
(Reporting by Bruno Federowski, editing by G Crosse)