SAO PAULO, Feb 7 Latin American currencies
weakened on Tuesday on concerns that the far right could win
France's presidential election and take the country out of the
Recent opinion polls have shown the anti-immigration
National Front leader Marine Le Pen, who promises to haul France
out of the euro zone and hold a referendum on EU membership,
reaching a second-round vote.
Fears that this could translate into a global economic shock
led traders to sell riskier assets, such as emerging market
currencies, and seek refuge in the U.S. dollar.
The Mexican peso weakened 0.3 percent after
dropping 1 percent the day before, a move exaggerated by low
trading volumes as local markets were closed for a holiday.
The Brazilian real slipped 0.1 percent, less than its
peers. Losses were limited by expectations of capital inflows
due to a recent flurry of corporate debt issuances.
Still, the country's benchmark Bovespa stock index
rose 1.1 percent, boosted by shares of miner Vale SA
and lender Itaú Unibanco Holding SA.
Vale shares tracked a rebound in iron ore prices from their
lowest in nearly four weeks, while traders also cheered the
success of a $1 billion bond reopening on Tuesday.
Shares of Itaú Unibanco rose 2.8 percent after Brazil's No.
1 bank by market value forecast lower loan-loss provisions this
year and reported higher-than-expected quarterly earnings.
Key Latin American stock indexes and currencies at 1435 GMT:
Stock indexes daily % YTD %
Latest change change
MSCI Emerging Markets 919.97 -0.33 7.04
MSCI LatAm 2537.27 0.22 8.16
Brazil Bovespa 64714.70 1.13 7.45
Mexico IPC 47080.62 -0.31 3.15
Chile IPSA 4253.46 0.15 2.46
Chile IGPA 21227.54 0.14 2.38
Argentina MerVal 19365.99 0.6 14.47
Colombia IGBC 10168.76 -0.22 0.40
Venezuela IBC 28220.30 0.25 -10.99
Currencies daily % YTD %
Brazil real 3.1290 -0.14 3.84
Mexico peso 20.6300 -0.32 0.55
Chile peso 645.41 -0.70 3.92
Colombia peso 2866.6 -0.53 4.71
Peru sol 3.291 -0.12 3.74
Argentina peso (interbank) 15.7550 0.16 0.76
Argentina peso (parallel) 16.44 0.24 2.31
(Reporting by Bruno Federowski; Editing by Lisa Von Ahn)