EMERGING MARKETS-Latam currencies mostly weaker on U.S. jobs data

Wed Jul 2, 2014 12:58pm EDT

SAO PAULO, July 2 (Reuters) - Latin American currencies
mostly weakened on Wednesday after better-than-expected job
market data from the United States boosted the dollar.
    Most equities markets in the region posted modest gains,
though a decline in bank and retailing shares kept Brazil's
Bovespa stock index stuck in slightly negative
territory.
    Data on Wednesday showed private employers in the United
States added workers at the fastest pace in 1-1/2 years in June,
leading traders to step up bets that a healthier economy could
lead U.S. interest rates higher. 
    The currencies of Brazil, Chile, Colombia and Peru are all
expected to soften over the next three to six months on an
expected pick up in U.S. growth and inflation, a Reuters poll
showed. 
    Losses in Brazil's real  were amplified by the
central bank's decision late Tuesday to begin rolling over some,
but not all, currency swaps that expire early in August. 
    By offering fewer contracts than it did last month, the bank
is signaling it wants to stop the real from gaining much
further, traders said.
    Colombia's peso extended recent gains after breaking
through the 1,880 per dollar technical resistance level on
Tuesday, while the Chilean peso rose alongside higher
prices for copper, the country's main export.
    Mexico's IPC stock index and Chile's IPSA stock index
 both rose less than half a percent. 
    Brazil's Bovespa moved slightly lower on thin trading volume
after remaining rangebound near 53,170 points for the last two
sessions. 
    Shares of lender Itau Unibanco Holding SA 
contributed most to the index's decline after the company said
on Wednesday that it had entered into exclusive talks with a
potential purchaser of its high-risk corporate insurance unit.
The deal is expected to bring in about 1.5 billion reais ($678.7
million). 
    
    Key Latin American stock indexes and currencies at 1632 GMT:
    
 Stock indexes                             daily %     YTD %
                               Latest       change    change
 MSCI Emerging Markets           1059.78       0.8      4.86
                                                    
 MSCI LatAm                      3363.54     -0.39      5.49
                                                    
 Brazil Bovespa                 52963.44     -0.39      2.83
                                                    
 Mexico IPC                     43048.49      0.41      0.75
                                                    
 Chile IPSA                       3880.7      0.25      4.91
                                                    
 Chile IGPA                     18912.64       0.2      3.76
                                                    
 Argentina MerVal                8152.37      1.14     51.22
                                                    
 Colombia IGBC                   14114.3     -0.07      7.98
                                                    
 Peru IGRA                      16704.28     -0.09      6.03
                                                    
 Venezuela IBC                   2105.63     -0.02    -23.06
                                                    
                                                            
 Currencies                                daily %     YTD %
                                            change    change
                                  Latest            
 Brazil real                      2.2155     -0.56      6.38
                                                    
 Mexico peso                     12.9642     -0.18      0.51
                                                    
 Chile peso                        551.5      0.16     -4.61
                                                    
 Colombia peso                   1857.19      0.17      4.03
 Peru sol                          2.795      0.04     -0.07
                                                    
 Argentina peso (interbank)       8.1375     -0.03    -20.22
                                                    
 Argentina peso (parallel)            12      1.25    -16.67
                                                    
 
        

 (Reporting by Priscila Jordao and Bruno Federowski, Writing by
Asher Levine; editing by Andrew Hay)
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