* Greek political uncertainty weighs
* Mexico's peso off 0.2 , Brazil's real 0.1 pct weaker
By Rachel Uranga
MEXICO CITY, May 11 The currencies of Mexico and
Brazil logged weekly losses on Friday as investors fretted about
turmoil in Greece and the possibility the country could exit the
The Mexican peso ended 0.20 percent weaker. The
Brazilian real finished 0.15 percent lower in i ts fifth
consecutive week of losses.
Investors held off big bets in risky assets ahead of any
further developments in the Greece saga over the weekend.
Politicians there are trying to overcome a deadlock that
could force new elections where an anti-austerity, leftist
candidate is favored. That has raised fears the country could
ditch its international bailout deal.
Latin American currencies got an initial boost on Friday
when a report showed the U.S. consumer sentiment index hit
four-year highs in early May. The data helped offset jitters
over Greece and news about a massive trading loss from Wall
Street giant JP Morgan Chase & Co. [ID: nL1E8GBHUL]
JPMorgan said it lost at least $2 billion from a
failed hedging strategy - an embarrassing failure for the
finance sector with investors already nervous over the shaky
health of banks in Spain.
Credit rating agency Fitch put the whole of the euro zone
on notice that if Greece were to leave the currency bloc, the
remaining countries could find their sovereign ratings at risk.
Global growth fears tend to steer investors away from
riskier assets like Latin American currencies. Brazil tends to
be particularly sensitive to economic indicators from China, a
top trading partner, where data showed factory output slowed
more than expected in April.
Brazil's real lost around 1.1 percent this week.
In Mexico, the peso lost about 2.6 percent this week in one
of its worst weekly performances since late November.
"Our expectation is that there will be an appreciation of
the peso one week from now, especially given the magnitude of
sell off of the first days of May," said Ezequiel Aguirre,
strategist at Bank of America-Merrill-Lynch.
Chile's peso weakened 0.14 percent, to bid at
486.90 per dollar. It has lost 0.8 percent this week.