EMERGING MARKETS-Brazil, Mexico currencies slip before Fed meeting
SAO PAULO, Sept 11 (Reuters) - Brazil's and Mexico's currencies weakened on Wednesday as investors took a more cautious approach ahead of next week's U.S. Federal Reserve meeting. The Brazilian real was down 0.46 percent after strenghtening for six days in a row, while the Mexican peso slipped 0.10 percent after a three-day rise. Other Latin American currencies were mixed, with the Colombia peso gaining 0.75 percent. Volatility in emerging-market currencies has spiked over the past few months as investors brace for an expected reduction in monetary stimulus from the U.S. central bank, which could begin as early as this month. The planned rollback in U.S. stimulus triggered an exodus of foreign capital that has put at risk the balance of payments of many countries. The stimulus tapering hinges on a stronger recovery of employment in the United States. Weaker-than-expected jobs numbers in the United States last week triggered speculation that the Fed could delay plans to reduce its bond-buying program, supporting emerging-market currencies over the past few days. "This rise (in the U.S. dollar against emerging-market currencies) today is absolutely natural, is a recovery from the previous sessions' moves," said Caio Sasaki, head of research at Brazilian brokerage XP Investimentos. The Fed's next monetary policy meeting will take place on Sept. 17 and 18. Currencies daily % YTD % change change Latest Brazil real 2.2911 -0.46 -10.96 Mexico peso 13.0910 -0.10 -1.73 Chile peso 502.2000 0.76 -4.68 Colombia peso 1922.5500 0.75 -8.14 Peru sol 2.7870 0.22 -8.47 Argentina peso 5.7200 -0.13 -14.12 Argentina peso (parallel) 9.2100 0.00 -26.38
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