By Bruno Federowski
SAO PAULO, April 4 The Mexican peso pared losses
on Tuesday after the country's central bank announced it would
intervene in the foreign exchange market in an effort to ease
pressure on the currency.
Mexico's central bank said it would sell up to $200 million
worth of currency hedging instruments to roll over paper set to
expire on Wednesday, just ahead of a meeting between U.S.
President Donald Trump and Chinese President Xi Jinping.
The bank had originally issued the instruments as a way to
stem the peso's slide following the election of Trump, who
threatened to scrap trade agreements with Mexico.
The peso has since made up some lost ground as those
concerns eased, with investors betting that he would not impose
big tariffs on Mexican exports to the United States.
Still, the peso fell the most among Latin American
currencies, weakening more than 0.8 percent.
Most Latin American currencies fell ahead of the Xi meeting,
which Trump has said "will be a very difficult one." He has held
out the possibility of using trade as a lever to secure China's
cooperation against North Korea.
Stock markets in the region were largely buoyant.
Argentina's benchmark stock index rose about 0.9
percent, touching a record high for the sixth straight trading
day, after agency S&P raised the country's sovereign rating by a
notch to B from B-.
Key Latin American stock indexes and currencies at 2020 GMT:
Stock indexes Latest Daily YTD pct
MSCI Emerging Markets 965.17 0.02 11.93
MSCI LatAm 2,669.06 0.44 14.03
Brazil Bovespa 65,768.91 0.85 9.20
Mexico IPC 49,342.77 1.07 8.11
Chile IPSA 4,825.76 0.71 16.24
Chile IGPA 24,158.32 0.6 16.51
Argentina MerVal 20,744.08 0.88 22.62
Colombia IGBC 10,180.99 0.07 0.52
Venezuela IBC 45,739.70 3.99 44.27
Currencies Latest Daily YTD pct
Brazil real 3.0978 0.55 4.89
Mexico peso 18.8305 -0.85 10.16
Chile peso 660.4 -0.33 1.56
Colombia peso 2,865.2 0.00 4.76
Peru sol 3.25 0.00 5.05
Argentina peso (interbank) 15.3550 0.31 3.42
Argentina peso (parallel) 15.83 1.01 6.25
(Reporting by Bruno Federowski; Editing by Diane Craft and Dan