By Bruno Federowski
SAO PAULO, Jan 11 The Mexican peso weakened to
an all-time low on Wednesday ahead of a news conference by U.S.
President-elect Donald Trump, whose protectionist rhetoric has
weighed on demand for the currency.
Traders expect Trump to clarify whether he will stand by his
campaign pledges to break with trade agreements with Mexico.
Last week, Ford Motor Co scrapped a planned Mexican
car factory following criticism by Trump on Twitter.
His promises of fiscal stimulus have also raised
expectations of inflationary pressures, which could force the
U.S. Federal Reserve to increase interest rates faster than
The peso weakened as much as 0.7 percent on
Wednesday to a historic low of 21.95 to the dollar before paring
back losses to 0.2 percent.
Other Latin American currencies also slipped, with the
Brazilian real 0.6 percent lower.
Still, Brazil's benchmark Bovespa stock index inched
up as rising prices of iron ore lifted shares of miner Vale SA
Shares of Braskem SA, Latin America's largest
petrochemical company, were the biggest gainers in the index.
Braskem agreed late on Tuesday to sell its quantiQ Distribuidora
Ltda to GTM Holdings SA for 550 million reais.
Steelmaker Usinas Siderúrgicas de Minas Gerais SA's
shares fell the most in more than a month after
shareholder Sumitomo Corp vetoed a plan to use some of
a mining subsidiary's capital to jumpstart operations and repay
Key Latin American stock indexes and currencies at 1415 GMT:
Stock indexes daily % YTD %
MSCI Emerging Markets 886.73 0.12 2.72
MSCI LatAm 2368.92 -1.04 2.27
Brazil Bovespa 61905.77 -0.36 2.79
Chile IPSA 4177.82 0.08 0.64
Chile IGPA 20849.43 0.08 0.56
Venezuela IBC 32453.15 0.2 2.36
Currencies daily % YTD %
Brazil real 3.2151 -0.53 1.06
Mexico peso 21.8400 -0.18 -5.02
Chile peso 670.6 -0.10 0.01
Colombia peso 2971.11 -0.68 1.02
Peru sol 3.394 -0.15 0.59
Argentina peso (interbank) 15.8700 -0.08 0.03
Argentina peso (parallel) 16.8 0.48 0.12
(Reporting by Bruno Federowski; Editing by Lisa Von Ahn)