By Bruno Federowski
SAO PAULO, Sept 22 Latin American stocks and
currencies rallied for a second day on Thursday as traders
doubled down on bets that the U.S. Federal Reserve will raise
interest rates slowly.
Fed policymakers reduced their forecasts of annual rate
increases to two from three for 2017 to 2018 in their policy
statement on Wednesday.
The move caught some traders by surprise after conflicting
remarks by Fed officials had revived bets on an aggressive
"This could trigger strong inflows into emerging markets,"
said Tarcísio Rodrigues, head of currency trading with Brazil's
The Mexican peso strengthened for a second
straight day after weakening to historic lows this week, also
supported by a rise in crude oil prices.
But many analysts believe the peso is poised to lose
further, weighed down by uncertainty over the outcome of the
U.S. presidential election in November.
Shares of Brazilian state-controlled oil company Petróleo
Brasileiro SA advanced, supporting the
country's benchmark Bovespa stock index.
The chief executive officer of Petrobras, as the company is
known, told Reuters on Wednesday a U.S. class-action lawsuit on
corruption will not overshadow the firm's $74 billion, five-year
plan to slash its crippling debt.
Key Latin American stock indexes and currencies at 1445 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 921.64 1.77 14.04
MSCI LatAm 2432.59 2.75 29.39
Brazil Bovespa 59289.23 1.53 36.77
Mexico IPC 47516.65 1.25 10.56
Chile IPSA 4101.83 0.67 11.46
Chile IGPA 20392.78 0.57 12.35
Argentina MerVal 16548.47 1.57 41.74
Colombia IGBC 9971.31 0.93 16.66
Venezuela IBC 12180.58 1.13 -16.50
Currencies daily % YTD %
Brazil real 3.1950 0.46 23.54
Mexico peso 19.6300 0.56 -12.23
Chile peso 656.2 1.31 8.15
Colombia peso 2850 1.43 11.20
Peru sol 3.352 0.45 1.85
Argentina peso (interbank) 15.1800 -0.23 -14.48
Argentina peso (parallel) 15.64 0.26 -8.76
(Reporting by Bruno Federowski; Editing by Dan Grebler)