EMERGING MARKETS-Brazil real rebounds from over 4-year low, peso firms

Thu Jul 4, 2013 5:53pm EDT

RIO DE JANEIRO, July 4 (Reuters) - Brazil's real bounced
back from a more than four-year low on Thursday and Mexico's
peso hit a two-week intraday high, but concerns about less U.S.
monetary stimulus will likely keep pressure on Latin American
assets.
    The region's currencies gained after European Central Bank
chief Mario Draghi said the ECB's interest rates will remain at
record lows for an extended period. 
    Draghi's comments helped offset concerns the U.S. Federal
Reserve could cut back on its bond purchases this year.
Near-zero interest rates in developed economies have helped
drive demand for riskier assets such as emerging-market
currencies.
    Trading volume was low since many foreign investors were
absent due to the U.S. Independence Day holiday. 
    U.S. nonfarm payrolls data due on Friday will be crucial for
gauging whether the Fed could move later this year to pull back
on its stimulus measures. Strong data could deepen bets that
less-relaxed U.S. policy may draw emerging-market investors back
to developed markets. 
    * Brazil's real  firmed 0.52 percent to 2.2485
per dollar, after closing on Wednesday at its weakest level
since April 2009.
    * Also supporting the real was a central bank decision to
remove restrictions to export financing operations, a measure
that analysts said could marginally increase the inflow of
dollars to the country. 
    * Mexico's peso  gained 0.16 percent to
12.9250 per dollar.
    * The peso hit an intraday high of 12.8280 per dollar, its
strongest since June 19, but the currency then retreated past
the 12.90 level.  

    Latin American FX prices at 2130 GMT: 
 Currencies                          daily %    YTD %
                                      change   change
                             Latest           
 Brazil real                 2.2485     0.52    -9.57
                                              
 Mexico peso                12.9125     0.26    -0.37
                                              
 Chile peso                502.3000     0.16    -4.70
                                              
                                                 
 Peru sol                    2.7830     0.00    -8.34
                                              
 Argentina peso              5.4025    -0.05    -9.07

 Argentina peso              7.9300     0.25   -14.50
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