April 19, 2018 / 2:38 PM / a month ago

EMERGING MARKETS-Latam currencies fall on technical correction, political jitters

    SAO PAULO, April 19 (Reuters) - Latin American currencies
fell against the dollar on Thursday, with the Mexican peso and
Brazilian real posting the strongest falls, as traders took
advantage of an opportunity to make a technical correction amid
continued political uncertainty.
    Both the peso and real had posted strong gains against the
greenback on Tuesday and Wednesday. Equities also rose across
the region on those days as traders bought back into risky asset
that they had previously exited.
    But in Mexico traders continue to be spooked by the strong
performance in opinion polls by Mexican leftist Andres Manuel
Lopez Obrador. A late Wednesday poll by polling firm Mitofsky
showed him pulling further ahead of his rivals in the run-up to
the July 1 presidential election.
    In Brazil, markets continued to be unsettled by an extremely
uncertain political outlook during an election year, with the
tactics of the country's left still up in the air following the
imprisonment of Luiz Inacio Lula da Silva, the presidential
front-runner who was jailed earlier in April for corruption.

    "We see a technical correction after (yesterday's
movement)," said Ricardo Gomes da Silva, director of brokerage
Correparti Corretora.
    The peso fell 0.83 percent against the dollar in
morning trade, while the real fell 0.49 percent. All
other major currencies in the region were down by lesser
percentages.
    Across the region, equities markets were mixed, with no
major gainers or losers.
    Among the biggest index movers on Brazil's benchmark Bovespa
index, which had risen 0.23 percent in morning trade,
was food processor BRF SA.
    Shares in BRF were trading up 8.6 percent on Thursday after
Pedro Parente, chief executive of state-run oil firm Petroleo
Brasileiro SA, said he had accepted an invitation
from major shareholders to become the company's new chairman.

       
Key Latin American stock indexes and currencies at 1426 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1184.21      0.69      1.53
                                                  
 MSCI LatAm                    3073.09     -0.63      9.35
                                                  
 Brazil Bovespa               85975.47      0.23     12.53
                                                  
 Mexico IPC                   48928.78     -0.33     -0.86
                                                  
 Chile IPSA                    5688.96     -0.03      2.23
                                                  
 Chile IGPA                   28415.08      0.02      1.55
                                                  
 Argentina MerVal             31482.23     -0.16      4.71
                                                  
 Colombia IGBC                12391.20      0.48      8.98
                                                  
 Venezuela IBC                24109.35      6.91   1808.68
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.3962     -0.49     -2.44
                                                  
 Mexico peso                   18.2310     -0.83      8.05
                                                  
 Chile peso                      594.3     -0.08      3.42
                                                  
 Colombia peso                 2715.49     -0.17      9.81
 Peru sol                        3.219     -0.06      0.56
                                                  
 Argentina peso                20.1200      0.07     -7.55
 (interbank)                                      
                                                  
 Argentina peso                  20.58      0.15     -6.56
 (parallel)                                       
                                                  
 

 (Reporting by Gram Slattery and Claudia Volante; editing by
Jonathan Oatis)
  
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below