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EMERGING MARKETS-LatAm currencies up on hopes of dovish Fed chair
October 27, 2017 / 4:13 PM / 22 days ago

EMERGING MARKETS-LatAm currencies up on hopes of dovish Fed chair

    By Bruno Federowski
    SAO PAULO, Oct 27 (Reuters) - Most Latin American currencies
strengthened on Thursday on a report that U.S. President Donald
Trump was leaning toward Federal Reserve Governor Jerome Powell
as his pick to head the U.S. central bank.
    The report, published by Bloomberg News, fostered
expectations that U.S. interest rates might take longer to rise
in coming months than previously anticipated, supporting demand
for high-yielding emerging market assets.
    Powell is seen as more dovish than alternative candidates
John Taylor, a Stanford University economist, and former Fed
Governor Kevin Warsh.
    The Mexican peso firmed 0.4 percent, while the
Colombian peso strengthened 0.3 percent. Both currencies
also tracked an increase in prices of oil, a key
export.
    The Brazilian real rose 0.6 percent as investors
turned to bargain-hunting the day after it hit a more than
four-month low.
    Still, investors remained concerned about whether President
Michel Temer can pass important legislation, such as
streamlining the nation's costly social security system.
    A batch of strong corporate earnings helped to lift the
benchmark Bovespa stock index, with gains in shares of
drugstore chain Raia Drogasil SA, wood pulpmaker
Suzano Papel e Celulose SA and GPA SA.
    Shares of state-controlled oil company Petróleo Brasileiro
SA added the most points to the benchmark index,
boosted by rising crude prices. Petrobras, as the company is
known, was part of three consortiums winning blocks in Brazil's
coveted pre-salt oil region in an auction on Friday.

      
    Key Latin American stock indexes and currencies at 1550 GMT:
 Stock indexes                               daily %    YTD %
                                              change   change
                                   Latest             
 MSCI Emerging Markets              1111.34     0.29    28.52
 MSCI LatAm                         2856.49    -0.11    22.17
 Brazil Bovespa                    76064.85     0.22    26.30
 Mexico S&P/BVM IPC                49076.06     0.18     7.52
 Argentina MerVal                  27757.49    -0.26    64.07
 Colombia IGBC                     10873.11    -1.22     7.36
 Venezuela IBC                       716.58    -0.04   -97.74
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                                      
                                     Latest           
 Brazil real                         3.2661     0.55    -0.52
 Mexico peso                        19.1300     0.42     8.44
 Colombia peso                      3007.25     0.26    -0.19
 Peru sol                             3.246    -0.18     5.18
 Argentina peso (interbank)         17.6150     0.31    -9.88
                                                      
 Argentina peso (parallel)            18.04     0.22    -6.76
                                                      
 
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
  

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