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EMERGING MARKETS-Latin American currencies rise amid global dollar weakness
September 22, 2017 / 5:18 PM / 3 months ago

EMERGING MARKETS-Latin American currencies rise amid global dollar weakness

    By Bruno Federowski
    SAO PAULO, Sept 22 (Reuters) - Latin American currencies
strengthened on Friday as a global decline in the U.S. dollar
triggered a technical correction in emerging markets.
    Traders, however, said the upswing was unlikely to be
extended in the coming days, amid speculation that the Federal
Reserve will raise interest rates once more this year and
escalating geopolitical tensions tied to North Korea. 
    Currencies from Brazil, Mexico and Colombia
 strengthened between 0.4 percent and 0.7 percent,
rebounding from the previous day's losses. 
    The move came as the dollar weakened against most developed
currencies after North Korea said it might test a
hydrogen bomb over the Pacific Ocean following threats by U.S.
President Donald Trump to destroy the country.
    Most emerging market currencies were still headed for weekly
losses, two days after the Fed hinted that it could hike rates
in December, potentially draining capital away from
high-yielding assets.
    Brazil's benchmark Bovespa stock index slipped 0.3
percent, dragged down by shares of miner Vale SA in
the wake of falling iron ore futures.
    Shares of Rumo SA rose by the most in almost two
months on news that the logistics operator plans to sell as much
as 2.63 billion reais ($841 million) in new shares to cut debt.

    Diversified retailer Carrefour Brasil SA, which
is not part of the benchmark index, marked its biggest loss
since going public in July after it unexpectedly replaced Chief
Executive Charles Desmartis with a 33-year veteran of parent
Carrefour SA.

    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                               daily %     YTD %
                                              change    change
                                  Latest              
 MSCI Emerging Markets              1102.45    -0.52     28.52
 MSCI LatAm                         2984.78      0.2     27.27
 Brazil Bovespa                    75389.16    -0.28     25.17
 Mexico S&P/BVM IPC                50423.57    -0.24     10.47
 Chile IPSA                         5288.97     0.02     27.40
 Chile IGPA                        26403.55     0.04     27.34
 Argentina MerVal                  24959.05     1.55     47.53
 Colombia IGBC                     11118.79     0.39      9.78
 Venezuela IBC                    422906.19    -0.69   1233.87
                                                              
 Currencies                                  daily %     YTD %
                                              change    change
                                     Latest           
 Brazil real                         3.1277     0.51      3.88
 Mexico peso                        17.7460     0.77     16.89
                                                      
 Chile peso                          624.55    -0.07      7.39
 Colombia peso                      2901.35     0.44      3.45
 Peru sol                             3.247     0.03      5.14
 Argentina peso (interbank)         17.2900    -0.12     -8.18
                                                      
 Argentina peso (parallel)            17.89     0.34     -5.98
                                                      
 
 (Reporting by Bruno Federowski; Editing by Paul Simao)
  

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