* Dollar inflows seen boosting Brazilian real in early 2013
* Mexican peso drops in sync with Wall Street
* Brazil real gains 0.3 pct; Mexican peso drops 0.2 pct
SAO PAULO, Jan 7 The Brazilian real drifted
higher on Monday as dollars flowed back into the country, but
the Mexican peso dipped in line with U.S. stocks, with investors
pocketing recent gains.
Trading volumes remained subdued after the holiday period,
as a U.S. session void of relevant economic data releases failed
to inspire investors.
The Brazilian real gained 0.3 percent to 2.029
per greenback as dollars resumed flowing following a seasonal
period of scarcity. Recent measures taken by the central bank to
facilitate foreign capital inflows also supported the currency.
"Outflows have been diminishing and we're even seeing (net)
inflows after the end of the year, when companies often send
profits abroad and hedge their FX positions," said Mauricio
Nakahodo, an economic research consultant with Tokyo-Mitsubishi
bank in Sao Paulo.
Inflation concerns also caused many investors to bet the
central bank would favor a real just slightly weaker than 2 per
dollar to avoid a pass-through to prices.
In Mexico, the peso weakened 0.2 percent to 12.7650
after a 1 percent rally in the first week of the year. Traders
said investors were pocketing part of those gains, taking a cue
from equity losses on Wall Street.
Latin American FX prices at 1802 GMT:
Currencies daily % year-to-
change ate %
Brazil real 2.029 0.3 0.52
Mexico peso 12.7650 -0.2 0.74
Argentina peso* 7.0200 0.28 -3.55
Chile peso 471.2000 0.36 1.59
Colombia peso holiday n/a n/a
Peru sol 2.5450 0.00 -0.24
* Argentine peso's rate between