EMERGING MARKETS-Brazil real gains on Fed bets, Mexico peso weaker

Mon Sep 10, 2012 6:19pm EDT

* Investors cautious ahead of Fed statement on Thursday
    * Chinese trading data underscores weak economy, stimulus
hopes
    * Brazilian real 0.2 pct stronger, Mexican peso drops 0.8
pct


    By Natalia Cacioli
    SAO PAULO, Sept 10 (Reuters) - The Brazilian real edged up
on Monday on expectations the U.S. Federal Reserve could unveil
further stimulus measures this week but the Mexican peso traded
off four-month highs as weak Chinese data added to global growth
concerns.
    Hopes that the Fed would announce a third-round of its
bond-buying program increased after poor U.S. payrolls data on
Friday, when Brazilian markets were closed for a national
holiday.
    U.S. monetary stimulus measures usually translate into
additional dollar inflows to emerging economies.
    The real  rose 0.2 percent as it caught up with
gains recorded by other Latin American currencies on Friday.
Market sentiment was weak, however, after Chinese trade data
came in below forecasts, underscoring a weak global economy.
 
    Imports fell 2.6 percent on the year in August, confounding
expectations of a 3.5 percent rise. Exports grew 2.7 percent,
below forecasts for a 3 percent rise in a Reuters poll. 
    "Expectations for Fed stimulus are having a larger impact
(on the real) than the Chinese data," said Mauricio Nakahodo, an
economic research consultant with Tokyo-Mitsubishi bank in Sao
Paulo. "But I believe that the real can start tracking external
markets as the session goes by."
    Markets were trading cautiously overseas. The euro 
was 0.1 percent weaker against the dollar, as investors await
the Fed's key monetary policy statement on Thursday and a
crucial ruling by a German constitutional court on the euro
zone's new bailout fund.
    The Mexican peso, Latin America's most traded
currency, weakened 0.78 percent to 13.0775.
    The weak Chinese data was positive for commodities and for
the Chilean peso, however, as it reinforced
expectations of additional economic stimulus there. 
    Chile's currency gained 0.15 percent to 475.00.
    China's infrastructure push is good news for economies that
produce raw materials used to make steel and other construction
materials.
    The Chilean peso gained 0.2 percent as prices of copper, the
country's main export product, hit a four-month high in London.
 
    
    Latin American FX prices at 1605 GMT:

    
        
 Currencies                         daily %    YTD %
                                     change   change
                            Latest           
 Brazil real                2.0231     0.19    -7.64
                                             
 Mexico peso               12.9920    -0.12     7.52
                                             
 Argentina peso*            6.3100     0.32   -25.04
                                             
 Chile peso               474.9000     0.17     9.35
                                             
 Colombia peso          1,800.4500     0.02     7.66
                                             
 Peru sol                   2.6080     0.00     3.41
                                             
 * Argentine peso's rate between                    
 brokerages
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