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EMERGING MARKETS-Mexico peso slips even as central bank sells forex hedge
March 6, 2017 / 4:58 PM / 7 months ago

EMERGING MARKETS-Mexico peso slips even as central bank sells forex hedge

    SAO PAULO, March 6 (Reuters) - The Mexican peso weakened
slightly on Monday even after the central bank intervened to
support the ailing currency.
    The central bank sold $1 billion worth of a new peso hedge
instrument similar to non-deliverable forwards. Total demand for
the new instruments was $2.075 billion, the bank said.

    It had announced last month that it would sell up to $20
billion in currency hedges to shore up the peso, which has been
battered by U.S. President Donald Trump's pledges to tear up the
North America Free Trade Agreement (NAFTA).
    Still, the peso has rebounded in recent weeks on
hopes that the United States and Mexico could strike a mutually
beneficial deal.
    It hit a nearly four-month high on Monday, extending gains
from last week triggered by comments from a high-ranking U.S.
trade official, before turning lower.
    Other Latin American currencies see-sawed as traders hoped
for more clues over the timing of the next U.S. interest rate
increase.
    Several Federal Reserve officials have signaled that could
happen as soon as this month, weighing on demand for
high-yielding emerging market assets.
    The Brazilian real was flat, while the country's
benchmark Bovespa stock index fell 0.7 percent. Shares
of miner Vale SA subtracted the most points from the
index, tracking a decline in iron ore prices.

    Key Latin American stock indexes and currencies at 1640 GMT:
 Stock indexes                             daily %    YTD %
                                  Latest    change   change
 MSCI Emerging Markets             934.02     0.32     7.98
                                                    
 MSCI LatAm                       2609.77     0.11    11.37
                                                    
 Brazil Bovespa                  66256.04    -0.79    10.01
 Mexico IPC                      47498.59     0.18     4.07
 Chile IPSA                       4434.92     0.12     6.83
                                                    
 Chile IGPA                      22240.96      0.2     7.27
 Argentina MerVal                19061.22    -1.06    12.67
                                                    
 Colombia IGBC                    9874.38    -0.33    -2.51
                                                    
 Venezuela IBC                   37624.86     0.07    18.67
                                                           
 Currencies                                daily %    YTD %
                                            change   change
                                   Latest           
 Brazil real                       3.1173    -0.14     4.23
                                                    
 Mexico peso                      19.5330    -0.17     6.20
                                                    
 Chile peso                         660.5    -0.41     1.54
                                                    
 Colombia peso                     2965.1     0.16     1.23
 Peru sol                           3.294    -0.46     3.64
                                                    
 Argentina peso (interbank)       15.4450     0.03     2.78
                                                    
 Argentina peso (parallel)          16.07     0.00     4.67
                                                    
 

 (Reporting by Bruno Federowski; Editing by Dan Grebler)
  

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