July 6, 2018 / 1:57 PM / in 3 months

EMERGING MARKETS-Most LatAm currencies climb as U.S. wage growth slows

    By Bruno Federowski
    BRASILIA, July 6 (Reuters) - Most Latin American currencies
strengthened on Friday after data showed U.S. wage growth was
less than forecast in June, suggesting the U.S. Federal Reserve
could take its time before raising interest rates.
    The U.S. economy created more jobs than expected last month
and data from April and May were revised up. But the
unemployment rate rose and growth of average hourly earnings
slowed, suggesting a limited inflationary impact.
    That helped to stem a recent selloff in emerging market
currencies, which suffered under the threat of a full-blown
trade war between the United States and China, rising U.S. bond
yields and an outlook for a wider U.S. fiscal deficit.
    The Mexican peso was the best-performing currency
in the region, rising 0.8 percent and on track to post its best
week in seven years.
    The peso had a rollercoaster ride this week after leftist
Andres Manuel Lopez Obrador won the presidential elections over
the weekend.
    Obrador's nationalist track record initially spooked
investors, but the currency bounced back after he and his
advisors sought to reassure investors he would stick to fiscal
discipline.
    The Brazilian real, however, weakened 0.2 percent,
extending a trend of underperforming its peers amid rising
concerns over this year's presidential elections.
    Public support for a nationwide truckers' strike in the
final weeks of May, which forced the government to introduce
costly subsidies despite struggling to curb a growing budget
deficit, added to doubts over whether the winner of the October
vote would stick to a market-friendly platform.
    
    Key Latin American stock indexes and currencies at 1345 GMT:
 Stock indexes                              daily %     YTD %
                                   Latest    change    change
 MSCI Emerging Markets             1056.20     0.18     -8.99
                                                     
 MSCI LatAm                        2506.55     0.08    -11.44
 Brazil Bovespa                   74660.95     0.14     -2.28
                                                             
 Currencies                                 daily %     YTD %
                                             change    change
                                    Latest           
 Brazil real                        3.9412    -0.20    -15.93
                                                     
 Mexico peso                       19.0700     0.79      3.30
                                                     
 Colombia peso                     2863.37     0.44      4.14
 Argentina peso (interbank)        28.0000     0.36    -33.57
                                                     
 Argentina peso (parallel)           28.85     0.35    -33.34
                                                     
 
 (Reporting by Bruno Federowski; Editing by Bernadette Baum)
  
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