REFILE-EMERGING MARKETS-Brazil's real dips on positive U.S. economic data

Wed Dec 4, 2013 6:16pm EST

MEXICO CITY, Dec 4 (Reuters) - Brazil's real sank on
Wednesday for a fourth straight day to its lowest level in more
than three months as a stream of positive U.S. economic data
bolstered investor bets of a near-term wind down of Federal
Reserve stimulus.
    The real  dipped 0.38 percent to 2.2375 per
dollar, its weakest finish since August 22, after data on
Wednesday showed U.S. private employers added 215,000 jobs in
November, topping economists' expectations. 
    Strong data out of the United States tends to boost
expectations that the Fed will begin to reduce its $85 billion
in monthly stimulus, which has supported demand for riskier,
higher-yielding emerging market assets. 
    The jobs data, coupled with a report on Monday showing U.S.
manufacturing grew at its fastest pace in 2-1/2 years last
month, fueled market anxiety ahead of U.S. gross domestic
product figures on Thursday and non-farm payrolls on
    "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
    Many investors believe the Fed will begin in March to slow
down its bond purchases.
    The real has also been battered by deteriorating 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 Mexican peso erased earlier losses to gain 0.50
percent to 13.0425 per dollar, boosted by optimism about the
approval of key economic reforms. 
    Mexico's Senate on Tuesday 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. 
    On Wednesday, a top ruling party lawmaker said Senate
committees could begin debate by Thursday on the energy
proposal, which aims to open the energy sector to private
investment and boost production at state oil giant Pemex
Latin American currencies at 2219 GMT:

 Currencies                               daily %     YTD %
                                           change    change
 Brazil real                    2.2375      -0.38    -14.55
 Mexico peso                    13.0425      0.50     -1.37
 Chile peso                    533.3000      0.13    -10.24
 Colombia peso                1949.2000     -0.26     -9.40
 Peru sol                        2.8030      0.04     -8.99
 Argentina peso (interbank)      6.1975     -0.28    -20.73
 Argentina peso (parallel)       9.5700     -2.82    -29.15
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