SAO PAULO, Feb 21 Latin American currencies
slipped on Tuesday after remarks by two U.S. policymakers fueled
expectations of a Federal Reserve interest rate increase next
Cleveland Fed President Loretta Mester said on Monday she
would be conformable hiking rates at this point if the economy
maintained its current pace.
Her speech echoed comments by Philadelphia Fed President
Patrick Harker to Market News International, who said a March
rate increase was an option.
Higher U.S. rates could drain capital away from
high-yielding emerging markets, weighing on their currencies.
The Brazilian real weakened 0.2 percent, while the
Mexican peso fell 0.5 percent.
Losses were limited by a weaker-than-expected reading on the
U.S. services sector, with Markit's U.S. services PMI falling to
the lowest since September.
Latin American stock markets advanced, supported by rising
prices of iron ore and crude futures.
Brazil's benchmark Bovespa stock index advanced 0.3
percent as shares of state-controlled oil company Petróleo
Brasileiro SA rose.
Still, shares of miner Vale SA fell 0.6 percent
as traders booked profits on a recent rally that drove them to a
Shares of toll road operator Ecorodovias Infraestrutura e
Logística SA were among the biggest gainers after the
company reported stronger fourth-quarter revenue and operating
Key Latin American stock indexes and currencies at 1520 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI Emerging Markets 944.78 0.13 9.43
MSCI LatAm 2656.84 0.09 13.41
Brazil Bovespa 68759.49 0.33 14.17
Mexico IPC 47606.60 1.11 4.30
Chile IPSA 4358.45 0.06 4.99
Chile IGPA 21795.95 0.05 5.12
Argentina MerVal 20101.84 0.31 18.82
Colombia IGBC 9970.75 -0.32 -1.55
Venezuela IBC 35130.07 0.66 10.80
Currencies daily % YTD %
Brazil real 3.0965 -0.30 4.93
Mexico peso 20.4275 -0.34 1.55
Chile peso 643.6 -0.40 4.21
Colombia peso 2905.15 -0.85 3.32
Peru sol 3.25 -0.12 5.05
Argentina peso (interbank) 15.7150 0.10 1.02
Argentina peso (parallel) 16.45 0.24 2.25
(Reporting by Bruno Federowski; Editing by Meredith Mazzilli)