Bonds News

EMERGING MARKETS-Brazil's real, Mexico's peso strengthen as dollar dips

(Updates with final prices)
    By Bruno Federowski
    SAO PAULO, Jan 17 (Reuters) - Mexico's peso and the
Brazilian real strengthened against the dollar on Tuesday as
U.S. traders returned from a long weekend in which
President-elect Donald Trump said the greenback's strength
against the Chinese yuan "is killing us."
    Brazil's central bank also sold $600 million worth of
traditional currency swaps, which function like dollar sales for
future delivery to investors, to roll over February maturities.
    The bank had refrained from intervening since Dec. 12 as the
currency consolidated near 3.2 to the dollar. The real 
firmed 0.81 percent to 3.21 on Tuesday after slipping 2 percent
in the two previous trading days.
    Brazil's central bank is the latest to step in after
uncertainty over Trump's policies triggered currency volatility.
    The Mexican central bank twice sold dollars to curb the
peso's decline this year. The peso firmed 1 percent on
Tuesday but remained near an all-time low set last week.
    Yields paid on Brazilian interest rate futures <0#2DIJ:>
narrowed as traders increased bets that the central bank will
cut interest rates by an additional 75 basis points next month.
    According to the minutes of the central bank's last policy
meeting, when it reduced the benchmark Selic rate by a
larger-than-expected 75 basis points, a more ample supply of
money will help the economy recover without fanning inflation.
    Key Latin American stock indexes and currencies at 2230 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets                894.87     0.65     3.78
 MSCI LatAm                          2439.86     1.07     4.24
 Brazil Bovespa                     64354.34     0.82     6.85
 Chile IPSA                          4231.33     0.21     1.93
 Chile IGPA                         21088.83     0.14     1.71
 Mexico IPC                         46002.56     0.57     0.79
 Colombia IGBC                      10172.74    -0.18     0.44
 Venezuela IBC                      31734.52     0.14     0.09
 Currencies                           Latest  daily %    YTD %
                                               change   change
 Brazil real                          3.2124     0.81     1.15
 Mexico peso                          21.509     1.03    -3.56
 Chile peso                            655.8     0.87     2.27
 Colombia peso                        2917.6     0.69     2.88
 Argentina peso (interbank)           15.900     0.06    -0.16
 Argentina peso (parallel)              16.8     0.24     0.12
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn and
Sandra Maler)