Bonds News

EMERGING MARKETS-Latam FX rises on vaccine hopes, Chile's peso bucks 4-day losing streak

    * Chilean peso up after central bank leaves rates unchanged
    * Argentina central bank lowers Leliq rate to 36%
    * Mexican peso outperforms Latam peers for the week

    By Shreyashi Sanyal
    Oct 16 (Reuters) - Latin American currencies rose on Friday
after Pfizer said it could apply for a U.S. emergency
use of its COVID-19 vaccine in November, while Chile's peso rose
as its central bank held interest rates steady in its latest
policy meeting.   
    News of Pfizer Inc's vaccine, which the drugmaker is
developing with German partner BioNTech, comes after
global markets were jolted by the halting of two high-profiled
COVID-19 vaccine trials earlier in the week.
    The MSCI's index for Latin American currencies
 rose 0.1%, but was headed for weekly declines of
more than 1%. 
    Chile's peso rose 1.1%, making gains for the first
time in five day after the country's central bank left its
benchmark rate steady at 0.5% on Thursday, maintaining its
efforts to revive the economy following the coronavirus
    The peso was also supported by strengthening prices of
copper, Chile's biggest export, as demand from China continued
to improve.   
    Mexico's peso added 0.4%, and was set to outpace its
Latam peers for the week. The country's currency has been
benefiting from an economic rebound in the United States, its
main trading partner.    
     The Argentine peso held steady after the central
bank said on Thursday it will lower the benchmark Leliq rate to
36% from the previous level of 37%, while raising the reverse
repo rate 3 points to 30%, as part of a wider push to harmonize
interest rates.
    "The lack of a clear and comprehensive reaction by the
authorities to the notorious denachoring in expectations is
creating a vicious circle and leading to a fast deterioration in
the economic situation in the country," emerging markers FX
strategists at Citigroup said. 
    Emerging market currencies are also exposed to volatility in
the run up to the U.S. presidential elections in November, with
analysts pointing to a Democratic Sweep as the most favorable
outcome for these currencies.  
    The Brazilian real weakened 0.2%, the only
decliner among major currencies in Latin America as investors
remained doubtful of the government's ability to fund a new
fiscal program without surpassing its spending ceiling.     
    Key Latin American stock indexes and currencies at 1445 GMT:
           Stock indexes                    Latest   Daily %
 MSCI Emerging Markets                      1125.00      0.4
 MSCI LatAm                                 1904.96    -0.24
 Brazil Bovespa                            99044.16    -0.01
 Mexico IPC                                37989.64    -0.18
 Chile IPSA                                 3636.77    -0.68
 Argentina MerVal                          48365.19    0.261
 Colombia COLCAP                            1162.58    -0.29
               Currencies                   Latest   Daily %
 Brazil real                                 5.6397    -0.31
 Mexico peso                                21.2110     0.30
 Chile peso                                     796     0.90
 Colombia peso                              3845.94     0.06
 Peru sol                                    3.5748     0.17
 Argentina peso (interbank)                 77.4500     0.04
 Argentina peso (parallel)                      168     1.79
 (Reporting by Shreyashi Sanyal in Bengaluru
Editing by Nick Zieminski)