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EMERGING MARKETS-Brazil real strengthens to 7-month high as cenbank acts
February 14, 2017 / 2:57 PM / 6 months ago

EMERGING MARKETS-Brazil real strengthens to 7-month high as cenbank acts

SAO PAULO, Feb 14 (Reuters) - The Brazilian real
strengthened to a seven-month peak on Tuesday after the central
bank resumed currency intervention following a two-week pause.
    The real firmed as much as 0.6 percent to 3.1095 to
the dollar before paring back gains to around 0.3 percent in
early afternoon trading.
    Gains were limited as the central bank indicated it could
allow around $4.3 billion worth of currency swaps, which
function like future dollar sales, to expire next month.
    The bank sold $300 million in currency swaps on Tuesday
morning to roll over March maturities. Should it maintain that
pace until the end of the month, it will roll over $2.7 billion
of the roughly $7 billion due next month.
    Some had speculated the bank could allow all of those
contracts to expire after it refrained from conducting any
auctions in recent weeks.
    The central bank currently holds $26.5 billion worth of
currency swaps on its balance sheet, down from more than $100
billion two years ago.
    Other Latin American currencies were mostly flat ahead of
testimony by U.S. Federal Reserve Chair Janet Yellen that will
be scrutinized for clues on the timing of the next interest rate
hike.
    Earlier on Tuesday, emerging market stocks inched up to set
19-month highs, but trading volumes were thin as investors
avoided big bets before Yellen's speech.

    Key Latin American stock indexes and currencies at 1440 GMT:
 Stock indexes                            daily %    YTD %
                               Latest      change   change
 MSCI Emerging Markets            937.38     0.21     8.49
                                                   
 MSCI LatAm                      2621.38     0.08     11.9
                                                   
 Brazil Bovespa                 66771.84    -0.29    10.87
                                                   
 Mexico IPC                     47557.52    -0.22     4.19
                                                   
 Chile IPSA                      4339.39    -0.44     4.53
                                                   
 Chile IGPA                     21649.25     -0.4     4.41
                                                   
 Argentina MerVal               19533.91     0.13    15.46
                                                   
 Colombia IGBC                  10041.21    -0.36    -0.86
                                                   
 Venezuela IBC                  32848.87     0.47     3.61
                                                   
                                                          
 Currencies                               daily %    YTD %
                                           change   change
                                  Latest           
 Brazil real                      3.1012     0.27     4.77
                                                   
 Mexico peso                     20.2700     0.06     2.34
                                                   
 Chile peso                        642.2    -0.02     4.44
                                                   
 Colombia peso                    2859.5     0.30     4.97
 Peru sol                          3.258     0.06     4.79
                                                   
 Argentina peso (interbank)      15.4100     0.52     3.02
                                                   
 Argentina peso (parallel)          16.4     0.18     2.56
                                                   
 

 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)

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