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EMERGING MARKETS-Mexico peso slips on Fed jitters, other Latam FX firms
November 20, 2014 / 7:53 PM / 3 years ago

EMERGING MARKETS-Mexico peso slips on Fed jitters, other Latam FX firms

MEXICO CITY, Nov 20 (Reuters) - Mexico's peso slipped on
Thursday as investors bet that the Federal Reserve was on course
to start raising U.S. interest rates next year, while other
Latin American currencies edged back from steep losses in the
last session.
    Mexico's peso dipped 0.14 percent on top of a sharp
fall on Wednesday after minutes from the last Fed meeting showed
policymakers shied away from highlighting financial market
volatility and a weakening global economy. 
    The minutes reinforced market expectations that the Fed will
hike interest rates after the first half of 2015.  
    Latin American currencies have been pushed to multi-year
lows this year amid expectations that higher U.S. interest rates
will reverse a tide of investment that flooded into emerging
markets in recent years, seeking higher yields.
    Mexico's peso is trading close to a 2-1/2 year low it hit
earlier this month. Chile's peso firmed 0.32 percent on
Thursday, but it was still trading near a more than 5 year low
it hit in September. Peru's sol also edged stronger.
    Brazilian financial markets were closed for a holiday. The
Brazilian real was supported on Wednesday by speculation that
President Dilma Rousseff might appoint a market-friendly name to
head the country's finance ministry. 
    Mexican and Chilean stocks were little changed on Thursday.
Stocks around Latin America have been slumping off highs since
September amid signs of weaker global growth.  
Key Latin American stock indexes and currencies at 1930 GMT:   
 Stock indexes                    daily %      YTD %
                       Latest      change     change
 MSCI LatAm           2,997.08       0.17      -6.52
 Brazil Bovespa      53,402.81     closed       3.68
 Mexico IPC          44,131.86       0.03       3.28
 Chile IPSA           3,972.94      -0.06       7.47
 Chile IGPA          19,333.84      -0.03       6.07
 Argentina MerVal     9,657.50       0.76      79.14
 Colombia IGBC       12,797.77      -0.25      -2.09
 Peru IGRA           15,226.96       0.59      -3.34
 Venezuela IBC        2,896.80       1.84       5.85
 Currencies                       daily %      YTD %
                                   change     change
 Brazil real            2.5718     closed      -8.36
 Mexico peso           13.6425      -0.18      -4.49
 Chile peso           598.9000       0.32     -12.16
 Colombia peso       2156.9000       0.11     -10.43
 Peru sol               2.9230       0.07      -4.45
 Argentina peso         8.5125       0.03     -23.73
 Argentina peso        13.4500       0.74     -25.65

 (Reporting by Michael O'Boyle; Editing by Chizu Nomiyama)

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