MEXICO CITY, April 21 Latin American currencies
traded mixed on Monday with Mexico's peso firming along with
U.S. stock markets, while Chile's peso slipped amid bets of
further interest rate cuts ahead.
Trading was thin following the Easter holiday, with markets
in Latin America's top economy Brazil still closed.
Chile's peso slipped 0.11 percent in the first
trading session since the country's central bank paused last
Thursday after a recent cycle of interest rate cuts, but
policymakers held the door open to further cuts ahead if
economic growth continues to cool.
Chile's peso has slumped about 11 percent since the central
bank began cutting borrowing costs last year and dropped its
benchmark rate by 100 basis points to 4 percent.
Lower interest rates reduce the appeal of emerging market
assets to global investors.
Mexico's peso firmed 0.15 percent to 13.0260 per
dollar as stocks in the United States, Mexico's top trading
partner, rose modestly after a strong rally last week.
Mexico's central bank is expected to hold its main interest
rate steady at 3.50 percent on Friday as easing inflation
pressures give policymakers room to leave borrowing costs low to
support an economic recovery.
Mexican stocks fell 0.34 percent as shares in copper
miner Grupo Mexico shed nearly 2 percent.
Stocks in Chile lost 0.22 percent as retailer
Falabella lost 1.8 percent.
(Reporting by Michael O'Boyle; Editing by Chris Reese)