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EMERGING MARKETS-Brazil, Mexico FX little changed after US retail data
July 16, 2012 / 4:03 PM / 5 years ago

EMERGING MARKETS-Brazil, Mexico FX little changed after US retail data

* U.S. retail sales drop for 3rd month in June
    * Markets speculate about stimulus measures from U.S., China
    * Brazil real drops 0.17 pct, Mexico peso up 0.17 pct

    By Natalia Cacioli
    RIO DE JANEIRO, July 16 (Reuters) - The currencies of Brazil
and Mexico were little changed on Monday after economic concerns
stemming from a surprise decline in U.S. retail sales were
offset by speculation about possible additional stimulus
measures from China or the United States.
    The Brazilian real  dipped 0.17 percent while
the Mexican peso edged up 0.17 percent after the
government reported U.S. retail sales fell for a third straight
month in June, frustrating hopes for a slight gain.
 
    The data spurred some speculation that U.S. Federal Reserve
Chairman Ben Bernanke could hint at a third round of the Fed's
bond-buying program when he delivers his semiannual monetary
policy report to Congress on Tuesday and Wednesday.
    Expectations that China, the largest consumer of commodities
exported by Latin America, would unleash additional stimulus
measures later this week, also bolstered sentiment.
 
    "Reports that China may adopt stimulus measures this week
are neutralizing concerns about Europe," said Luciano Rostagno,
chief strategist with WestLB bank in Sao Paulo. 
    "The market is also wondering how long it is going to take
for the Fed to implement QE3," he added, referring to the U.S.
central bank's program of bond purchases, known as quantitative
easing.
    Brazil's real was also pressured by expectations that the
Brazilian government will continue to resort to a lower interest
rates and a weaker currency to support a faltering economy.
    Earlier in the day, a weekly central bank survey showed
economists cut their estimate for Brazil's economic growth this
year for the 10th consecutive week, to 1.9 percent.
 
        
    Latin American FX prices from Reuters at 1545 GMT:
   
 Currencies                            daily %     YTD %
                                        change    change
                              Latest            
 Brazil real                  2.0401     -0.17     -8.41
                                                
 Mexico peso                 13.2794      0.17      5.20
                                                
 Argentina peso*              6.1600      0.16    -23.21
                                                
 Chile peso                 489.5000      0.86      6.09
                                                
 Colombia peso            1,778.0000     -0.08      9.02
                                                
 Peru sol                     2.6230      0.00      2.82
                                                
 * Argentine peso's rate between                        
 brokerages

0 : 0
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