* Cyprus may reject bailout plan, reigniting euro zone crisis * Brazil exporters sell dollars to take advantage of weaker real * Brazil real 0.2 pct stronger, Mexico peso drops 0.2 pct By Walter Brandimarte RIO DE JANEIRO, March 19 Latin American currencies weakened on Tuesday as investors feared Cyprus would reject the terms of a bailout offered by the European Union, potentially reviving a debt crisis in the euro zone. Investors sought dollars and other safer assets as the Cypriot parliament looked set to repel the bailout plan even as the government proposed to spare small savers from a divisive levy on bank deposits. The Mexican peso, the most liquid Latin American currency, dropped 0.4 percent but still remained as the best performing currency in the region with year-to-date gains of more than 3 percent. The Chilean peso lost 0.2 percent to close at a two-week low of 472.70 per dollar. "The peso was dragged lower by the poor performance of global markets, with nearly all stock indexes falling, as well as copper prices," said a trader in Santiago, referring to Chile's main export product. In Brazil, however, the real gained 0.2 percent as exporters stepped into the market to take advantage of a weaker currency, which had dropped about 2 percent over six consecutive sessions of losses. "Exporters and those who have (dollar) loans are taking the opportunity to close operations in advance," said Mario Battistel, a currency manager at Fair brokerage in Sao Paulo. Latin American FX prices at 1800 GMT: Currencies daily % YTD % change change Latest Brazil real 1.9835 0.21 2.85 Mexico peso 12.4400 -0.24 3.41 Chile peso 472.7000 -0.21 1.27 Colombia peso 1811.5000 -0.17 -2.51 Peru sol 2.5940 0.12 -1.66 Argentina peso 5.0950 0.05 -3.58 Argentina peso 8.2300 -1.82 -17.62
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