June 8, 2015 / 4:07 PM / 3 years ago

EMERGING MARKETS-Latam currencies rise on dollar outlook

SAO PAULO, June 8 (Reuters) - Latin American currencies
strengthened on Monday as investors reacted to a report, later
denied, that U.S. authorities were uncomfortable with the
dollar's recent gains.
    Local stock markets were mixed, though the broader MSCI
Latin American stock index reversed a
three-session slump.
    U.S. President Barack Obama was quoted in a Bloomberg
report, citing an unnamed French official, as saying that a
strong dollar was a problem. While the White House denied the
report, traders remained cautious, driving the U.S. currency
lower globally. 
    With no major local market drivers, the Brazilian real
  followed suit, strengthening about 0.6 percent
against the dollar and erasing losses from the previous
three-session slump. 
    Investors remain attentive to the outlook for Brazilian
interest rates and the success of a government belt-tightening
initiative. The central bank will release the minutes from its
most recent rate-setting meeting on Thursday, while the lower
house of Congress was set to vote on elements of the fiscal
adjustment on Wednesday. 
    Other major currencies in the region gained as well, with
Chile's peso adding about 0.8 percent against the dollar.
    The peso could near a low of 634-642 per dollar in the week,
according to Ricardo Bustamante, an analyst with ForexChile in
Santiago, who cited weak local economic data as a likely
impediment to higher interest rates. 
    In stocks, Brazil's Bovespa index edged slightly
higher as a rise in state-run oil producer Petroleo Brasileiro
SA, known as Petrobras, offset a decline in iron-ore
exporter Vale SA. 
    Vale shares were hampered by disappointing trade data from
China, its No. 1 customer, on Monday. 
    Key Latin American stock indexes and currencies at 1556 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets          978.01     -0.42       2.7
 MSCI LatAm                    2504.17      0.87     -8.99
 Brazil Bovespa               53154.06      0.34      6.29
 Mexico IPC                   44550.01     -0.03      3.25
 Chile IPSA                    3958.32     -0.22      2.79
 Chile IGPA                   19288.41     -0.21      2.22
 Argentina MerVal             11231.68      0.14     30.92
 Colombia IGBC                10307.04      0.91    -11.41
 Peru IGRA                 -            -            -
 Venezuela IBC                       -         -         -
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.1247      0.81    -14.95
 Mexico peso                   15.6748      0.24     -5.94
 Chile peso                      631.7      0.76     -4.01
 Colombia peso                    2613      0.31     -8.61
 Peru sol                        3.151      0.07     -5.46
 Argentina peso                 9.0175     -0.03     -5.18
 Argentina peso                  12.55      0.80     11.55

 (Additional reporting by Froilán Romero in Santiago; Writing by
Asher Levine; Editing by Jeffrey Benkoe)
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