EMERGING MARKETS-Brazil real gains on inflows, Mexico peso dips

Mon Jan 7, 2013 7:34pm EST

* Dollar inflows seen boosting Brazilian real in early 2013
    * Mexican peso drops in sync with Wall Street
    * Brazil real gains 0.3 pct; Mexican peso drops 0.2 pct


    SAO PAULO, Jan 7 (Reuters) - The Brazilian real drifted
higher on Monday as dollars flowed back into the country, but
the Mexican peso dipped in line with U.S. stocks, with investors
pocketing recent gains.
    Trading volumes remained subdued after the holiday period,
as a U.S. session void of relevant economic data releases failed
to inspire investors.
    The Brazilian real  gained 0.3 percent to 2.029
per greenback as dollars resumed flowing following a seasonal
period of scarcity. Recent measures taken by the central bank to
facilitate foreign capital inflows also supported the currency.
    "Outflows have been diminishing and we're even seeing (net)
inflows after the end of the year, when companies often send
profits abroad and hedge their FX positions," said Mauricio
Nakahodo, an economic research consultant with Tokyo-Mitsubishi
bank in Sao Paulo.
    Inflation concerns also caused many investors to bet the
central bank would favor a real just slightly weaker than 2 per
dollar to avoid a pass-through to prices.
    In Mexico, the peso weakened 0.2 percent to 12.7650
after a 1 percent rally in the first week of the year. Traders
said investors were pocketing part of those gains, taking a cue
from equity losses on Wall Street.
            
    Latin American FX prices at 1802 GMT:
    
 Currencies                             daily %  year-to-
                                         change     ate %
                              Latest               change
 Brazil real                   2.029        0.3      0.52
                                                 
 Mexico peso                 12.7650       -0.2      0.74
                                                 
 Argentina peso*              7.0200       0.28     -3.55
                                                 
 Chile peso                 471.2000       0.36      1.59
                                                 
 Colombia peso               holiday     n/a       n/a
                                                 
 Peru sol                     2.5450       0.00     -0.24
                                                 
 * Argentine peso's rate between                         
 brokerages
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