EMERGING MARKETS-Latam currencies gain on US jobs data; real edges lower

Fri May 3, 2013 11:07am EDT

* US creates more jobs than expected in April
    * Brazil industrial production disappoints in March
    * Mexico peso up 0.7 per cent, Brazil real dips 0.1 per cent

    SAO PAULO, May 3 (Reuters) - Most Latin American currencies
strengthened on Friday after a stronger-than-expected U.S. jobs
report eased concerns about a sharp slowdown in the world's
largest economy, encouraging investors to take on risk in
emerging markets.
    The currencies of Mexico and Chile gained
0.7 percent and 0.5 percent, respectively, after the report
showed U.S. employers added 165,000 new jobs last month, more
than the 145,000 expected by economists. The U.S. jobless rate
fell to a four-year low of 7.5 percent as a result.
 
    The U.S. data was especially relevant for Mexico, which
sends most of its exports to its northern neighbor. 
    The Brazilian real  softened slightly in thin
trading, however, as investors had little incentive to bet on a
stronger currency due to a weak domestic data and possible
central bank interventions in the market.
    Among the latest data underscoring Brazil's economic
challenges, industrial production for March rose about half as
much as investors expected. On Thursday, another report showed
Brazil recorded in April its third traded deficit in four months
as local industry struggled. 
    "The market is much quieter and investors are cautious due
to domestic and external uncertainties," said Reginaldo Siaca, a
manager at Advanced brokerage in Sao Paulo.
    He noted the government seems to be comfortable with an
exchange rate around 2 reais per dollar, which limits investors'
willingness to make strong bets on different currency levels.

    Latin American FX prices at 1450 GMT:
    
 Currencies                         daily %    YTD %
                                     change   change
                            Latest           
 Brazil real                2.0117    -0.11     1.41
                                             
 Mexico peso               12.0920     0.70     6.39
                                             
 Chile peso               469.6000     0.45     1.94
                                             
 Colombia peso           1837.8400     0.04    -3.91
                                             
 Peru sol                   2.6280     0.76    -2.93
                                             
 Argentina peso             5.1950    -0.05    -5.44

 Argentina peso             9.8500    -2.23   -31.17
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