EMERGING MARKETS-Latam currencies zigzag on ECB rate cut, US data

Thu Nov 7, 2013 10:26am EST

RIO DE JANEIRO, Nov 7 (Reuters) - Latin American currencies
had a choppy session on Thursday as a surprise interest-rate cut
by the European Central Bank initially sent them higher, before
stronger-than-expected U.S. economic data poured cold water on
the rally. 
    The ECB cut its main refinancing rate to a record low of
0.25 percent, fueling investors' appetite for risk around the
globe. 
    Investors turned more cautious less than an hour later,
however, after stronger-than-expected U.S. gross domestic
product data for the third quarter added to fears of an early
stimulus withdrawal by the Federal Reserve. d
    Markets are likely to remain cautious before the release of
Friday's non-farm payroll report in the United States, which
will be key to determine the future of the Fed's stimulus
program.
    "We've been following U.S. data over the past few days and
maybe Friday will be the most important day, with the jobs data
providing some clarity about the timing of Fed tapering," said
Glauber Romano, a trader with Intercam brokerage in Sao Paulo. 
    * The Brazilian real  last traded at 2.2855 per
dollar, 0.15 percent weaker for the day, after gaining to as
much as 2.2710 and dropping to as much as 2.2930 earlier.
    * The Mexican peso was 0.3 percent stronger at
13.1395 per dollar, shedding part of its nearly 0.7 gain earlier
in the session. 
    * The Mexican currency is set to easily outperform the real
over the next 12 months as investors remain optimistic about
prospects for reforms in the long term, a Reuters poll showed.
 

    Latin America FX prices at 1506 GMT:
    
 Currencies                         daily %    YTD %
                                     change   change
                            Latest           
 Brazil real                2.2855    -0.15   -10.74
                                             
 Mexico peso               13.1395     0.31    -2.10
                                             
 Chile peso               515.7000    -0.12    -7.17
                                             
 Colombia peso           1924.3000    -0.31    -8.23
                                             
 Peru sol                   2.7870     0.11    -8.47
                                             
 Argentina peso             5.9350     0.34   -17.23

 Argentina peso             9.8100     0.20   -30.89
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