April 19, 2017 / 5:06 PM / in 6 months

EMERGING MARKETS-Mexico peso extends losses as trade fears resurface

    By Bruno Federowski
    SAO PAULO, April 19 (Reuters) - The Mexican peso extended
losses on Wednesday after remarks by U.S. President Donald Trump
rekindled expectations of strong protectionist measures against
Mexico.
    The peso weakened 1.4 percent to a nearly two-week
low after Trump reiterated his threat to eliminate the North
American Free Trade Agreement with Canada and Mexico if it
cannot be changed.
    Fears that Trump's anti-trade rhetoric could pummel the
Mexican economy had battered the peso last year, but the
currency recovered in recent months as talks between both
countries seemed to take on a moderate tone.
    The peso was the worst performer among Latin American
currencies, which slipped due to mounting political concerns
ranging from tensions in North Korea and Syria to elections in
France and Britain.
    The Brazilian real also suffered after lawmakers
delayed to May a vote on President Michel Temer's landmark
pension overhaul, which many see as necessary to pull the
country out of its deepest recession on record.
    Still, Brazil's benchmark Bovespa stock index fell
only 0.3 percent, supported by a rise in Vale SA's
stock. Itaú BBA analysts recommended clients purchase shares of
the miner, saying recent losses may be overdone.
    
    Key Latin American stock indexes and currencies at 1650 GMT:
 Stock indexes                                 daily %   YTD %
                                      Latest    change  change
 MSCI Emerging Markets                 952.53    -0.54   11.07
 MSCI LatAm                           2610.09    -1.66   13.39
 Brazil Bovespa                      63969.56     -0.3    6.21
 Mexico IPC                          48875.04     0.23    7.08
 Argentina MerVal                    20632.27    -0.18   21.96
 Colombia IGBC                       10114.95    -0.69   -0.13
 Venezuela IBC                       47561.23     0.49   50.01
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                       Latest           
 Brazil real                           3.1413    -0.91    3.43
 Mexico peso                          18.8685    -1.40    9.94
 Chile peso                             648.5     0.00    3.42
 Colombia peso                        2865.22    -0.90    4.76
 Peru sol                                3.25     0.00    5.05
 Argentina peso (interbank)           15.3800    -0.52    3.22
                                                        
 Argentina peso (parallel)              15.96    -0.56    5.39
                                                        
 

 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
  

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