(Updates prices)
By Bruno Federowski
SAO PAULO, July 18 (Reuters) - Mexico's peso hit a more than 14-month high
on Tuesday and Brazil's real firmed sharply after the collapse of a key U.S.
healthcare bill fostered doubts about President Donald Trump's economic plans
and broadly weighed on the dollar.
Trump's promises to cut taxes and boost spending has triggered expectations
of faster inflation that could force the Federal Reserve to raise interest rates
more than expected, potentially draining capital from emerging markets.
Trader skepticism over Trump's pledges grew after a second attempt by U.S.
Senate Republicans to pass a healthcare reform bill failed, casting further
doubt over the Fed's plan to hike rates once more this year.
Currencies from Brazil, Mexico, Chile and Colombia
strengthened between 0.5 percent and 0.8 percent, extending gains last
week.
Mexico's peso traded at its strongest since early May 2016 while the
Brazilian real firmed to its best against the dollar since mid-May 2017.
Wider emerging market stocks flirted with 27-month highs but Latin
American bourses mostly slipped as traders feared slower growth could translate
into lower U.S. imports from key trading partners in the region.
Brazil's benchmark Bovespa stock index edged up 0.19 percent, helped
by gains in shares of wood pulp maker Suzano Papel e Celulose SA.
Latin American stock indexes and currencies at 20:14 GMT:
Stock indexes Latest Daily YTD pct
pct change
change
MSCI Emerging Markets 1,053.52 +0.19 +21.95
MSCI LatAm 2,737.28 +0.61 +16.24
Brazil Bovespa 65,337.67 +0.19 +8.49
Mexico S&P/BVM IPC 51,099.71 -0.45 +11.96
Chile IPSA 5,039.72 -0.14 +21.40
Chile IGPA 25,151.92 -0.08 +21.31
Argentina MerVal 21,053.48 -1.14 +24.45
Colombia IGBC 10,984.20 -0.61 +8.45
Venezuela IBC 130,240.12 -0.12 +310.78
Currencies Latest Daily YTD pct
pct change
change
Brazil real 3.1547 +0.80 +3.00
Mexico peso 17.479 +0.64 +18.68
Chile peso 655.500 +0.63 +2.32
Colombia peso 3,016.000 +0.49 -0.48
Peru sol 3.243 +0.12 +5.27
Argentina peso (interbank) 17.115 -1.08 -7.25
Argentina peso (parallel) 17.790 -0.39 -5.45
(Additonal reporting by Michael O'Boyle in Mexico City; Editing by Phil
Berlowitz)
