March 9, 2017 / 4:49 PM / 5 months ago

EMERGING MARKETS-LatAm currencies weaken on U.S. rate hike bets

    SAO PAULO, March 9 (Reuters) - Latin American currencies
weakened on Thursday on bets that the U.S. Federal Reserve will
increase rates next week, dampening the allure of high-yielding
emerging market assets.
    Those expectations have steadily continued in recent weeks
following stronger-than-expected U.S. economic figures and
comments by key Fed policymakers.
    All of the more than 100 economist polled by Reuters expect
the U.S. central bank to tighten next week, with two more hikes
likely to follow later in the year.
    Traders will closely follow Friday's U.S. nonfarm payrolls
report as an indicator of labor market health that could set the
tone for the Fed's policy statement.
    The Mexican peso weakened 0.7 percent, while the
Colombian peso slipped 0.2 percent. Both currencies also
tracked a decline in oil prices following a surge in U.S.
inventories.
    Brazil's benchmark Bovespa stock index fell for a
fourth straight day, despite rising shares of planemaker Embraer
SA.
    Shares in Embraer reached a 10-month high after it reported
stronger-than-expected fourth quarter net income and forecast
higher profits this year.
    
    Key Latin American stock indexes and currencies at 1640 GMT:
 Stock indexes                             daily %    YTD %
                                  Latest    change   change
 MSCI Emerging Markets             923.05    -1.27     8.42
                                                    
 MSCI LatAm                       2524.06    -1.26     9.21
                                                    
 Brazil Bovespa                  64545.65    -0.27     7.17
 Mexico IPC                      47297.57    -0.51     3.63
 Chile IPSA                       4461.21    -0.16     7.46
                                                    
 Chile IGPA                      22412.05    -0.13     8.09
 Argentina MerVal                19047.92    -0.96    12.59
                                                    
 Colombia IGBC                    9816.72     -0.2    -3.07
                                                    
 Venezuela IBC                   38943.31     3.56    22.83
                                                           
 Currencies                                daily %    YTD %
                                            change   change
                                   Latest           
 Brazil real                       3.1727    -0.13     2.41
                                                    
 Mexico peso                      19.8095    -0.68     4.72
                                                    
 Chile peso                           665    -0.38     0.86
                                                    
 Colombia peso                    2995.03    -0.18     0.22
 Peru sol                           3.296     0.00     3.58
                                                    
 Argentina peso (interbank)       15.6400     0.06     1.50
                                                    
 Argentina peso (parallel)          15.98     0.25     5.26
                                                    
 

 (Reporting by Bruno Federowski; Editing by Jonathan Oatis)
  

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