EMERGING MARKETS-Latam currencies dip as Fed-inspired rally fades

Mon Oct 28, 2013 10:20am EDT

RIO DE JANEIRO, Oct 28 (Reuters) - Latin American currencies
dipped on Monday as investors put the brakes on a recent rally
that had been supported by bets that the U.S. Federal Reserve
will signal this week that its stimulus plan will remain in
place for longer. 
    The Fed is widely seen keeping the pace of its bond-buying
program unchanged at $85 billion per month at the end of its
two-day meeting on Wednesday. Expectations that it will not
begin withdrawing that stimulus until March 2014 have boosted
investors' appetite for risk in the past few days.
 
    * The Brazilian real  was steady at 2.1874 per
dollar, however, supported by a central bank plan to roll over
maturing currency swaps, derivative contracts that offer
investors protection against a currency depreciation.
    * Brazil's central bank said it will offer as many as 20,000
swaps on Monday, at the first of three auctions this week to
roll over similar contracts that mature on Nov. 1. So far,
policymakers have renewed nearly $3 billion of the $8.9 billion
of currency swaps that expire early next month. 
    * The Mexican peso dropped 0.2 percent after a rally
that also was boosted on Friday by a central bank statement
signaling no more interest rate cuts are in the
pipeline. 

    Latin America FX prices at 1350 GMT: 
    
 Currencies                       daily %    YTD %
                                   change   change
                                           
                          Latest           
 Brazil real              2.1874     0.02    -6.74
                                           
 Mexico peso             12.9000    -0.16    -0.28
                                           
 Chile peso             507.8000    -0.45    -5.73
                                           
 Colombia peso          1884.100    -0.08    -6.27
                               0           
 Peru sol                 2.7590     0.07    -7.54
                                           
 Argentina peso           5.8900    -0.08   -16.60

 Argentina peso          10.0600     0.20   -32.60
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