EMERGING MARKETS-Mexico, Chile pesos gain after US inflation data

Fri Dec 14, 2012 8:22pm EST

* Brazil economic activity picks up in October
    * China manufacturing sector growth accelerates
    * Brazil real dips 0.07, Mexico peso firms 0.46


    MEXICO CITY, Dec 14 (Reuters) - Mexico's peso gained and
Chile's currency hit a nearly two-month high on Friday after a
drop in U.S. inflation backed bets that ultra-easy monetary
policy in the United States will keep pushing investors toward
emerging markets.
    Mexico's peso gained 0.46 percent to 12.7485 per
dollar while Chile's peso firmed 0.21 percent 473.80
per dollar to its strongest since October.
     U.S. data showed consumer prices fell in November for the
first time in six months. The U.S. Federal Reserve this week,
for the first time in its history, announced it would link its
policy to the level of joblessness and inflation.
  
    The prospect of low interest rates in the United States for
an extended period boosts the appeal of higher-yielding emerging
market assets.
    Latin American finance ministers said on Friday they are
worried stimulus measures in the developed world will trigger
more capital flows that could further strengthen the region's
currencies and hurt local manufacturers. 
    China's manufacturing sector expanded in December at its
fastest pace in 14 months, adding to evidence of an economic
pickup that helped support global market sentiment.
 
    In Brazil, the most recent economic data also suggested the
economy was recovering, but not enough to cause investors to
change their bets that the country's base Selic rate will remain
stable in 2013. 
    Brazil's real  slipped 0.07 percent to 2.0842
per dollar. The currency has been trading around 2.07 and 2.08
this week after intervention by the central bank dragged the
real back from a 3-1/2 year low.

    Latin American FX prices at 0030 GMT:
    
 Currencies                       daily %  year-to
                                   change   date %
                          Latest            change
 Brazil real              2.0842    -0.07    -10.4
                                           
 Mexico peso             12.7485     0.46      9.6
                                           
 Argentina peso*          6.5100     0.15    -27.3
                                           
 Chile peso             473.8000     0.21      9.6
                                           
 Colombia peso        1,796.2000     0.02      7.9
                                           
 Peru sol                 2.5600     0.20      5.4
                                           
 * Argentine peso's rate between                  
 brokerages
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