October 20, 2015 / 2:30 PM / 2 years ago

EMERGING MARKETS-Latam currencies slip on China, Fed concerns; real steady

By Bruno Federowski
    SAO PAULO, Oct 20 (Reuters) - Latin American currencies
weakened on Tuesday on concern about the Chinese economy and a
possible U.S. interest rate hike this year, but the Brazilian
real was steady after opposition lawmakers delayed filing an
impeachment request against President Dilma Rousseff.
    The Mexican peso dropped 0.3 percent while the Chilean peso 
lost 0.6 percent as fears of a hard landing of the Chinese
economy resurfaced this week, knocking down commodities prices. 
    Also weighing on Latin American currencies were fears that
U.S. interest rates could go up this year, driving investors
away from high-yielding emerging market bonds.
    Brazil's real was little changed as investors took a
breather after lawmakers who oppose Rousseff said they would not
file a request for her impeachment on Tuesday morning, as
feared. Instead, they promised to file the request on Wednesday.
    Worries about the possibility of an impeachment have added
volatility to Brazil's foreign exchange market as traders fear
political instability would make it even harder for the
government to balance its accounts and regain investor
confidence.
    "The market is cautious, waiting for news. What makes
everyone nervous is that this might be the calm before the
storm," said a trader at a Sao Paulo-based bank who requested
anonymity because he is not allowed to talk to the press.
    Volumes were muted as traders remained on the sidelines
ahead of a central bank meeting that is largely expected to
leave benchmark rates stable.

    Key Latin American stock indexes and currencies at 1410 GMT:
    
 Stock indexes                              daily %    YTD %
                                             change   change
                                 Latest              
 MSCI Emerging Markets              864.09    -0.36    -9.31
                                                     
 MSCI LatAm                        2032.83    -0.12   -25.39
 Brazil Bovespa                   47408.93    -0.08    -5.20
 Mexico IPC                       44403.24    -0.27     2.91
 Chile IPSA                        3815.24     0.08    -0.93
 Chile IGPA                       18701.44     0.07    -0.90
 Argentina MerVal                        0        0  -100.00
 Colombia IGBC                     9486.29     0.23   -18.47
 Venezuela IBC                    12710.26     0.16   229.39
                                                            
 Currencies                                 daily %    YTD %
                                             change   change
                                    Latest           
 Brazil real                        3.8736     0.05   -31.39
                                                     
 Mexico peso                       16.5283    -0.27   -10.80
 Chile peso                          684.4    -0.61   -11.40
 Colombia peso                      2928.5    -0.36   -18.46
 Peru sol                           3.2561    -0.15    -8.51
                                                     
 Argentina peso (interbank)         9.4950     0.03    -9.95
                                                     
 Argentina peso (parallel)           16.06    -0.75   -12.83
                                                     
 
 (Reporting by Bruno Federowski; Editing by Dan Grebler)

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