By Bruno Federowski
SAO PAULO, Feb 24 Latin American currencies
weakened on Friday, weighed down by falling commodity prices and
uncertainty over U.S. economic policy.
China-listed iron ore futures dropped more than 2 percent
after a rapid rally, hammering assets from exporters of basic
Oil prices also fell as U.S. crude inventories rose for a
seventh week. Currencies from oil-producers Mexico and
Colombia weakened 1 percent and 0.6 percent,
Doubts over to what extent U.S. President Donald Trump will
manage to implement protectionist policies and fiscal spending
also weighed on demand for riskier assets.
The Brazilian real was the biggest decliner, trading
back at 3.10 to the greenback, as traders closed positions ahead
of the long Carnival holiday.
Brazil's benchmark Bovespa stock index slipped 0.6
Shares of miner Vale SA fell as much as 3.6
percent on news that Chief Executive Murilo Ferreira will step
down once his term ends.
They later reversed losses to rank among the biggest gainers
on the index as concerns eased regarding a possible political
appointment of his replacement.
Sources told Reuters some controlling shareholders lean
towards picking one of Ferreira's lieutenants. External
candidates with previous experience at Vale are also under
consideration, they added.
Key Latin American stock indexes and currencies at 1650 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 943.97 -0.86 10.42
MSCI LatAm 2617.95 -1.89 14.01
Brazil Bovespa 67089.46 -0.55 11.39
Mexico IPC 46666.64 -1.14 2.24
Chile IPSA 4344.37 -0.34 4.65
Chile IGPA 21727.23 -0.32 4.79
Argentina MerVal 19130.36 -2.08 13.08
Colombia IGBC 9966.95 -0.49 -1.59
Venezuela IBC 35710.09 2.22 12.63
Currencies daily % YTD %
Brazil real 3.1043 -1.60 4.67
Mexico peso 19.8545 -1.02 4.48
Chile peso 646 -0.74 3.82
Colombia peso 2886.72 -0.62 3.98
Peru sol 3.25 -0.15 5.05
Argentina peso (interbank) 15.4450 0.42 2.78
Argentina peso (parallel) 16.24 0.12 3.57
(Reporting by Bruno Federowski; Editing by Chizu Nomiyama)