July 14, 2015 / 3:59 PM / 2 years ago

EMERGING MARKETS-Brazil, Mexico currencies firm on U.S. retail data

SAO PAULO, July 14 (Reuters) - The currencies of Brazil and Mexico gained
modestly on Tuesday after an unexpected drop in U.S. retail sales raised hopes
that the U.S. interest rates may rise slightly later than expected, providing an
extra boost to higher-yielding assets in emerging markets.
    The Brazilian real and the Mexican peso gained around 0.3
percent and 0.2 percent, respectively, after a report showed U.S. consumers cut
back on purchases of automobiles and a range of other goods in June.
 
    "The Federal Reserve has made it clear that it is going to look at data to
decide on interest rates, and today's numbers came in weak," said Reginaldo
Galhardo, head of currency trading at brokerage Treviso in Sao Paulo.
    Retail sales also came in below expectations in Brazil, dampening prospects
for additional monetary tightening by Brazil's central bank. 
    Brazilian interest-rate futures fell as a result. Yields paid on
interest-rate contracts maturing in January 2017 dipped 4 basis points
to 13.52 percent.
    
    Key Latin American stock indexes and currencies at 1535 GMT:
    
 Stock indexes                         Latest    Daily  YTD pct
                                                   pct   change
                                                change  
 MSCI Emerging Markets                 940.09    -0.31    -1.39
 MSCI LatAm                          2,496.27     0.51    -8.95
 Brazil Bovespa                     53,018.25    -0.19     6.02
 Mexico IPC                          45,111.8     0.27     4.56
 Chile IPSA                           3,908.9     0.15     1.50
 Chile IGPA                         19,002.04     0.12     0.70
 Argentina MerVal                    12,066.1     0.97    40.65
 Colombia IGBC                      10,025.91     0.46   -13.83
 Venezuela IBC                      15,208.28    -0.83   294.13
                                                               
 Currencies                            Latest    Daily  YTD pct
                                                   pct   change
                                                change  
 Brazil real                           3.1197     0.34   -14.82
 Mexico peso                          15.6709     0.20    -5.91
 Chile peso                               643     0.08    -5.69
 Colombia peso                        2,686.6    -0.06   -11.11
 Peru sol                              3.1781     0.00    -6.26
 Argentina peso (interbank)            9.1300    -0.03    -6.35
                                                        
 Argentina peso (parallel)                 14    -1.07     0.00
 

 (Reporting by Walter Brandimarte and Bruno Federowski; editing by G Crosse)

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