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EMERGING MARKETS-Latam currencies gain with oil; real pressured by Petrobras
February 5, 2015 / 4:43 PM / 3 years ago

EMERGING MARKETS-Latam currencies gain with oil; real pressured by Petrobras

RIO DE JANEIRO, Feb 5 (Reuters) - Most Latin American
currencies rose on Thursday as oil prices recovered part of
their recent losses, but concern about a growing corruption
scandal at Brazil's state-run oil company Petrobras weighed on
the real.
    The currencies of Mexico, Chile, and Colombia
 rose between 0.4 percent and 1.0 percent as prices of oil
and other commodities rallied, boosting the export outlook for
those countries.
    Still, the Brazilian real seesawed around the
unchanged mark, one day after closing at its weakest level in
nearly 10 years, with investors fearing the fallout of a
corruption scandal that forced Petrobras' chief executive and
other top executives to resign.
    The scandal has already caused Petrobras to cut investment
and became a major political headache to President Dilma
Rousseff. On Thursday, Brazil's federal police summoned the
treasurer of the ruling Workers' Party to investigate his
possible involvement in the scheme, which allegedly funneled
kickback payments to the party and government allies in
    Shares of Petrobras gained 1.6 percent,
contributing to a 0.6 percent rise in Brazil's benchmark Bovespa
index, as investors awaited the announcement on Friday
of a new chief executive to head the company. 
    Analysts warned, however, that Rousseff is likely to have a
hard time finding a star executive to turn around the oil firm,
which has so far been unable to publish audited third-quarter
results with necessary writedowns related to corruption

    Key Latin American currencies and stock indexes at 1725 GMT
 Stock indexes                    daily %    YTD %
                                   change   change
 MSCI Emerging            982.44     0.17     2.56
 MSCI LatAm              2654.84     0.52    -3.17
 Brazil Bovespa         49592.11     0.59    -0.83
 Mexico IPC             42012.91     0.72    -2.63
 Chile IPSA              3925.82     0.22     1.94
 Chile IGPA             19116.38     0.17     1.30
 Argentina MerVal        9136.81     1.99     6.50
 Colombia IGBC          11055.67     1.22    -4.98
 Peru IGRA              13836.61     0.59    -6.47
 Venezuela IBC           3616.12     0.52    -6.29
 Currencies                       daily %    YTD %
                                   change   change
 Brazil real              2.7381     0.09    -2.94
 Mexico peso             14.7502     0.96    -0.04
 Chile peso                  624     0.40    -2.82
 Colombia peso           2381.75     0.46     0.26
 Peru sol                  3.061    -0.07    -2.68
 Argentina peso           8.6600     0.00    -1.27
 Argentina peso            13.21     0.68     5.98

 (Reporting by Marcela Ayres and Bruno Federoski in Sao Paulo,
writing by Walter Brandimarte, editing by W Simon)

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