RIO DE JANEIRO, Nov 7 Brazil's real led Latin
American currencies down on Thursday after
stronger-than-expected U.S. economic data fanned fears of a
near-term tapering of Federal Reserve stimulus.
The real slipped past the 2.30 per dollar level for the
first time in two months after data showed U.S. growth
accelerated in the third quarter, marking its fastest pace of
expansion in a year, as businesses restocked
The Fed has said it will begin to roll back its $85 billion
in monthly bond buying purchases, which has juiced investor
appetite for emerging market assets, if the U.S. economy picks
Currencies had strengthened earlier in the day after the
European Central Bank cut interest rates to a record low of 0.25
percent and said it could take them lower still to prevent the
euro zone's recovery from stalling.
Markets are likely to remain cautious before the release of
Friday's U.S. non-farm payroll report, which will be key to
determine the future of the Fed's stimulus program.
"We've been following U.S. data over the past few days and
maybe Friday will be the most important day, with the jobs data
providing some clarity about the timing of Fed tapering," said
Glauber Romano, a trader with Intercam brokerage in Sao Paulo.
* The Brazilian real weakened more than 1
percent to 2.306 per dollar, its weakest level since early
September. The currency is down more than 11 percent this year.
* The Mexican peso fell 0.37 percent to 13.2305 per
dollar, its lowest level since early October. But the currency
is down less than 3 percent this year and is set to easily
outperform the real over the next 12 months as investors remain
optimistic about prospects for reforms in the long term, a
Reuters poll showed.
* Mexico's president has been pushing a host of reforms
through Congress designed to beef up growth, from a bid to boost
the country's weak tax take to measures to increase production
at state oil giant Pemex.
Latin America FX prices at 2050 GMT:
Currencies Daily pct YTD pct
Brazil real 2.306 -1.04 -11.54
Mexico peso 13.2305 -0.37 -2.75
Chile peso 517.2000 -0.41 -7.44
Colombia peso 1,928.6500 -0.54 -8.43
Peru sol 2.7900 0.00 -8.57
Argentina peso (interbank) 5.9425 0.21 -17.33
Argentina peso (parallel) 9.7500 0.82 -30.46