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EMERGING MARKETS-LatAm currencies extend gains on dovish Fed
March 16, 2017 / 4:28 PM / in 4 months

EMERGING MARKETS-LatAm currencies extend gains on dovish Fed

3 Min Read

    By Bruno Federowski
    SAO PAULO, March 16 (Reuters) - Most Latin American
currencies extended gains for a second session on Thursday, a
day after the U.S. Federal Reserve refrained from signaling an
acceleration of interest rate hikes.
    The Fed raised rates for a second time in three months on
Wednesday but both the policy-setting committee and Chair Janet
Yellen said future increases will be "gradual." 
    The move dashed market expectations that the U.S. central
bank would adopt hawkish rhetoric following a batch of
stronger-than-expected economic indicators.
    A slower pace of rate hikes would support demand for
emerging market assets, which tend to lure foreign investors
with higher yields.
    The Chilean and Colombian pesos strengthened
more than 1 percent.
    The Brazilian real, however, slipped 0.3 percent
after the central bank indicated it could allow around $4.2
billion worth of traditional currency swaps, which correspond to
future dollar sales to investors, to expire at the end of the
month.
    Brazil's benchmark Bovespa stock index fell 0.7
percent as traders booked profits on shares of miner Vale SA
 following a 12 percent three-day gain.
    Shares of Petróleo Brasileiro SA also fell after
Brazil's federal audit court ruled the state-controlled oil
company will need to restart its divestment program.

    
    Key Latin American stock indexes and currencies at 1605 GMT:
 Stock indexes                                 daily %   YTD %
                                                change  change
                                    Latest              
 MSCI Emerging Markets                 964.23     2.19    9.42
 MSCI LatAm                           2620.71     1.24    10.6
 Brazil Bovespa                      65743.83    -0.74    9.16
 Mexico IPC                          47992.89      1.1    5.15
 Chile IPSA                           4610.08     1.35   11.05
 Chile IGPA                          23130.41     1.23   11.56
 Argentina MerVal                    19527.76     0.82   15.43
 Colombia IGBC                        9919.31     0.33   -2.06
 Venezuela IBC                       37783.00     0.38   19.17
                                                              
 Currencies                                    daily %   YTD %
                                                change  change
                                       Latest           
 Brazil real                           3.1195    -0.29    4.16
 Mexico peso                          19.1930     0.14    8.08
 Chile peso                             662.2     1.21    1.28
 Colombia peso                         2923.3     1.45    2.68
 Peru sol                               3.246     0.34    5.18
 Argentina peso (interbank)           15.5450     0.18    2.12
                                                        
 Argentina peso (parallel)              15.99     0.44    5.19
                                                        
 
 (Reporting by Bruno Federowski; Editing by Dan Grebler)
  

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