November 14, 2018 / 10:32 PM / a month ago

EMERGING MARKETS-Latam currencies firmer, snap losing run

 (Recasts, updates prices, adds quotes)
    By Aaron Saldanha
    Nov 14 (Reuters) - Latin American currencies snapped a
six-session losing run on Wednesday, spurred by Brazil's real
and Mexico's peso and a softer dollar that helped emerging
markets currencies in general.
    "The euro has had a pretty impressive move so that's just
generally suppressing the dollar, and most currencies are doing
better as a function of that," said Sacha Tihanyi, deputy head
of emerging markets strategy at TD Securities. 
    MSCI's index of currencies in Latin America
was up about 0.4 percent, its best one-day performance in about
two weeks.
    Its index of equities in Latin America rose
1.1 percent, to gain for a first session in seven.
    Brazil's real and Mexico's peso both firmed
about 0.5 percent. The peso's recovery was in line with other
emerging market currencies, said Salvador Orozco, a fixed income
strategist with Santander in Mexico.
    Following news that Mexican central bank Deputy Governor
Roberto del Cueto had submitted his resignation due to health
reasons, the peso had briefly erased all gains but then firmed
again.
    On Thursday, the bank is set to meet and a hike in the key
rate is broadly expected.
    Mexican stocks fell, however, taking total losses 
this week to about 4.3 percent. The benchmark index is on track
for its worst weekly performance since February.  
    It has been dragged down largely by financials amid worries
over the future policies of the incoming leftist government,
with a senator's proposal to cap and eliminate certain banking
commissions shaking investor sentiment.
    That followed plans to scrap a part-built new airport for
Mexico City.    
    Brazilian stocks rose 1.3 percent, led by consumer
staples and financials. President-elect Jair Bolsonaro, who
takes power in January, said "bitter" austerity measures were
needed.
    Argentina's peso firmed about 0.4 percent and local
stocks shot up 2.9 percent to snap a four session losing
run.
    The country's senate is debating the 2019 budget presented
by President Mauricio Macri's government, in the last step to
convert a deal struck with the International Monetary Fund into
law.     
    
    Key Latin American stock indexes and currencies at 2132 GMT
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          968.14      0.22    -16.43
                                                  
 MSCI LatAm                    2582.73      1.11     -8.68
                                                  
 Brazil Bovespa               85973.06      1.25     12.53
                                                  
 Mexico IPC                   42322.15     -0.23    -14.25
                                                  
 Chile IPSA                    5135.81      0.11      0.11
                                                  
 Argentina MerVal             29372.54       2.9     -5.06
                                                  
 Colombia IGBC                12162.74      0.66      6.97
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7836     -0.05    -12.43
                                                  
 Mexico peso                   20.3930      0.46     -3.40
                                                  
 Chile peso                      682.8      1.35     -9.98
                                                  
 Colombia peso                 3198.75     -0.40     -6.78
 Peru sol                        3.384     -0.15     -4.34
                                                  
 Argentina peso                35.8500      0.53    -48.12
 (interbank)                                      
                                                  
 Argentina peso                   35.5      2.11    -45.83
 (parallel)                                       
                                                  
 
 (Reporting by Aaron Saldanha in Bengaluru, Editing by Rosalba
O'Brien)
  
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