May 21, 2018 / 9:16 PM / in 10 months

EMERGING MARKETS-Brazil real surges, Mexico peso slips past 20/dlr

 (Updates prices, adds detail on Mexico peso)
    SAO PAULO, May 21 (Reuters) - Brazil's real gained more than
1 percent on Monday after the country's central bank boosted its
currency swap program, while Mexico's peso weakened past 20 per
dollar to a more than one-year low. 
    Brazil's central bank on Friday had said it would triple the
currency swap contracts - equivalent to operations to sell
dollars in futures markets - offered daily, after the real fell
to its lowest level in more than two years.
    The real on Monday rose 1.35 percent, although
traders said the currency might have risen more had it not been
for market caution ahead of the scheduled release on Tuesday of
the Brazilian central bank minutes.
    Mexico's peso briefly blew past 20 per dollar,
touching its weakest level since March 2017, before slightly
    The peso is likely to trade weaker than 20 to the dollar as
talks drag out to renegotiate the North American Free Trade
Agreement, analysts at Mexico's Banco Base said. 
    U.S. Treasury Secretary Steven Mnuchin on Monday said major
issues remained among the United States, Canada and Mexico to
rework the treaty, and that there was no specific deadline.
    In Argentina, the volatile peso strengthened 0.23
percent amid optimism over ongoing efforts by the government to
obtain a financing line from the International Monetary Fund.

    Stocks suffered across Latin America, led by Brazil's
Bovespa index, down 1.28 percent, and Mexico's IPC index
, down about 0.80 percent.
    In Brazil, shares of iron ore producer Vale S.A.
fell more than 3 percent, in line with the drop in China's iron
ore futures to their weakest level in two weeks.
Key Latin American stock indexes and currencies at 1954 GMT:    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1139.29      0.14     -1.79
 MSCI LatAm                    2702.53      0.04     -4.48
 Brazil Bovespa               82016.72     -1.28      7.35
 Mexico IPC                   45296.01     -0.81     -8.22
 Chile IPSA                    5667.86     -0.38      1.86
 Chile IGPA                   28679.66     -0.29      2.50
 Argentina MerVal             31768.11     -0.32      5.66
 Colombia IGBC                12107.50     -0.16      6.48
 Venezuela IBC                22795.88     -0.66   1704.70
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.6891      1.35    -10.19
 Mexico peso                   19.8550      0.43     -0.79
 Chile peso                      636.5      0.00     -3.43
 Colombia peso                    2875      1.52      3.72
 Peru sol                        3.283      0.12     -1.40
 Argentina peso                24.3750      0.23    -23.69
 Argentina peso                   25.3      0.40    -23.99

 (Reporting by Gram Slattery, Claudia Violante, Miguel Angel
Gutierrez and Daina Beth Solomon
Editing by Paul Simao and Lisa Shumaker)
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