REFILE-EMERGING MARKETS-Latam currencies steady as investors await U.S. data

Wed Dec 4, 2013 6:17pm EST

RIO DE JANEIRO, Dec 4 (Reuters) - Latin American currencies
were steady on Wednesday, with the Brazilian real posting modest
gains after three sessions of steep losses, as investors focused
on upcoming U.S. economic data for clues about the future of
U.S. stimulus measures.
    Investors are particularly anxious about U.S. gross domestic
product numbers on Thursday and the non-farm payrolls report on
Friday. The data may provide clues on whether the U.S. Federal
Reserve may start winding down its bond-buying program earlier
than expected, which could hurt investors' appetite for emerging
market assets.
    "We're waiting for the U.S. data. If they come in very
strong, that could hurt our currency as it would add to
expectations that the Fed is going to withdraw its stimulus
earlier," said Sidenei Nehme, a director at NGO brokerage in Sao
Paulo.
    Many investors believe the Fed will begin in March to slow
down its bond purchases, currently worth $85 billion a month.
Part of that money often flows into emerging markets as
investors seek higher returns.   
    * The Brazilian real  edged up 0.2 percent
after three consecutive sessions of losses took it to a
three-month low on Tuesday. The currency has been battered by
concerns about the future of the U.S. stimulus program and by
the deterioration of domestic fundamentals, including a
larger-than-anticipated contraction in the country's third
quarter GDP.
    * However, better-than-forecast industrial production
numbers for Brazil in October provided some support to investor
sentiment on Wednesday. The report still left some investors
cautious as it also showed a slower pace of expansion in capital
goods manufacturing, one of the weakest parts of the Brazilian
economy. 
    * Brazil's interest-rate futures contracts were
little changed as investors awaited Thursday's release of
minutes of the central bank's latest monetary policy meeting,
which may provide clues on whether policymakers are considering
slowing down the pace of monetary tightening.
    * The Mexican peso was little changed at 13.100 per
dollar after rallying some 0.8 percent on Tuesday, boosted by
optimism about the approval of key economic reforms. 
    * Mexico's Senate on Tuesday overwhelmingly approved an
electoral reform demanded by the opposition, helping pave the
way for Congress to focus on an energy bill that is at the
center of President Enrique Pena Nieto's economic agenda.
 Latin American currencies at 1333 GMT:

 Currencies                        daily %    YTD %
                                    change   change
                           Latest           
 Brazil real               2.3732     0.22   -14.04
                                            
 Mexico peso              13.1000     0.06    -1.80
                                            
 Chile peso              534.0000     0.00   -10.36
                                            
 Colombia peso          1950.9500    -0.35    -9.48
                                            
 Peru sol                  2.8050    -0.07    -9.06
                                            
 Argentina peso            6.1825    -0.04   -20.54

 Argentina peso            9.2600    -0.43   -26.78
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