EMERGING MARKETS-Latin American currencies weaken; China and Fed weigh

Thu Nov 21, 2013 8:07am EST

SAO PAULO, Nov 21 (Reuters) - Latin American currencies
weakened on Thursday, led lower by the Brazilian real, hurt by
signs of weaker Chinese manufacturing and expectations that the
U.S. Federal Reserve could cut back stimulus in coming months.
    Halting recoveries in European countries dragged demand for
China's manufactured goods to a three-month low in November,
business surveys showed on Thursday. China is a principal
destination for Latin American exports, driving the strength of
the region's currencies. 
    Reactions to U.S. Fed minutes also continued to weigh on
investors' appetite for emerging-market currencies, especially
in Sao Paulo where a holiday limited trading a day earlier.
    Minutes from the Fed's last meeting released on Wednesday
said the central bank could begin at one of its next few
meetings to scale back a bond-buying program that has increased
investor appetite for riskier assets and weakened the dollar.

    * Brazil's real  weakened 1.71 percent to 2.308
per dollar, its biggest retreat in over two weeks, after little
change in thin holiday trading on Wednesday.
    * Brazilian policymakers have been regularly selling
currency swaps to provide investors with protection against a
possible depreciation of the real. On Thursday, they sold 10,000
swaps as part of their daily intervention program. 
    * Mexico's peso  lost 0.23 percent to 13.1275
per dollar, at its weakest levels in a week. 

    
 Latin American currencies at 1301 GMT:
 Currencies                               daily %     YTD %
                                           change    change
                                 Latest            
 Brazil real                     2.3080     -1.71    -11.61
                                                   
 Mexico peso                    13.1275     -0.23     -2.01
                                                   
 Chile peso                    522.5000     -0.06     -8.38
                                                   
 Colombia peso                1934.0000     -0.31     -8.69
                                                   
 Peru sol                        2.7960      0.18     -8.76
                                                   
 Argentina peso (interbank)      6.0450     -0.12    -18.73
                                                   
 Argentina peso (parallel)       9.8900      0.30    -31.45
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