May 2, 2017 / 4:08 PM / 4 months ago

EMERGING MARKETS-LatAm currencies seesaw ahead of Fed decision, U.S. data

    By Bruno Federowski
    SAO PAULO, May 2 (Reuters) - Latin American currencies
seesawed on Tuesday as traders stood pat ahead of a Federal
Reserve policy decision and key U.S. jobs market data later in
the week.
    The Fed was expected to hold interest rates steady on
Wednesday but may hint it was on track for an increase in June,
according to a Reuters poll of economists.
    Higher U.S. rates could dampen the allure of high-yielding
emerging market bonds, reducing the value of their currencies.
    Also providing hints about the path of U.S. monetary policy,
the U.S. Labor Department was scheduled to release on Friday
April's nonfarm payrolls report.
    Analysts have generally been optimistic over the figures,
with economists forecasting a 185,000 payroll gain, up from
March's 98,000.
    The Brazilian real strengthened 0.1 percent following
a long weekend, while the Mexican peso was down 0.7
percent. The Chilean peso slipped 0.1 percent,
pressured by a decline in prices of copper.
    Brazil's benchmark Bovespa stock index rose 2
percent, supported by shares of banks such as Banco Bradesco SA
 and Itaú Unibanco Holding SA.
    Trading volumes were thin as investors awaited further
developments in the government's efforts to pass wide structural
reforms, including a pension system revamp. Bets on
stronger-than-expected opposition in Congress have reduced
demand for Brazilian assets in recent weeks.
    Falling shares of planemaker Embraer SA helped to
limit gains of the index following a 59 percent drop in
first-quarter net income.
    
    Key Latin American stock indexes and currencies at 1600 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets               988.26     0.87    13.63
 MSCI LatAm                         2653.13     1.32    11.87
 Brazil Bovespa                    66521.21     1.71    10.45
 Mexico IPC                        49590.64     0.67     8.65
 Chile IPSA                         4855.80     1.27    16.97
 Chile IGPA                        24363.48     1.14    17.50
 Argentina MerVal                  21053.41     0.15    24.44
 Colombia IGBC                     10216.25     0.18     0.87
 Venezuela IBC                     57972.29     0.49    82.85
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.1699     0.10     2.50
 Mexico peso                        18.7870    -0.31    10.42
 Chile peso                             668    -0.19     0.40
 Colombia peso                      2945.45    -0.19     1.90
 Peru sol                             3.249    -0.18     5.08
 Argentina peso (interbank)         15.2850     0.75     3.86
                                                      
 Argentina peso (parallel)             15.9     0.57     5.79
                                                      
 

 (Reporting by Bruno Federowski; Editing by Jonathan Oatis)
  

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