(Updates to close)
By Sruthi Shankar
June 28 (Reuters) - Most Latin American currencies fell on
Friday, with the Brazilian real leading losses, ahead of a
high-stakes meeting between U.S. and Chinese leaders over their
trade dispute that has roiled financial markets for months.
U.S. President Donald Trump said on Friday he hoped for
productive talks with Chinese President Xi Jinping, set to be
held at the sidelines of a Group of 20 (G20) summit in Osaka,
but said he had not made any promises about a reprieve from
escalating tariffs.
While most traders do not see both sides striking a trade
deal, Trump is expected to refrain from imposing new tariffs on
Chinese goods.
"The broad consensus is that they will agree to resume talks
and at best, the U.S. will pledge to hold off from imposing
remaining sanctions for now," RBC's global head of FX strategy,
Elsa Lignos, wrote in a note.
The Brazilian real was down about 0.5%, giving back
much of its gains made on Thursday after the government's
special congressional pension coordinator Samuel Moreira said
there was still time to vote on pension reform in June, even
after a committee meeting was canceled on Thursday.
The central bank said on Friday Brazil's public finances
swung back into the red in May with the primary deficit widening
sharply from a year ago, although overall national debt as a
share of the economy fell unexpectedly.
However, Sao Paulo-listed shares rose 0.2%, with
industrial companies leading gains. The Bovespa is trading near
record levels after a 14.9% climb so far this year.
Other currencies in the region stayed largely flat, with the
Mexican peso holding steady after the Bank of Mexico kept
rates unchanged on Thursday, as expected.
President Andres Manuel Lopez Obrador said on Thursday that
Mexico's state oil company Pemex signed an $8 billion
syndicated loan with more than 20 banks to renew credit lines
and refinance liabilities.
The peso has been hit by recent credit downgrades for the
indebted firm. Mexican stocks fell 0.6%, dragged down by
airport operators.
Peru's sol ended lower after its central bank
intervened in the foreign exchange market by buying $20 million
and the Colombian peso also weakened.
The Argentine peso closed up 0.4%, but has shed over
11% in the first six months of the year, making it among the
worst-performing emerging currencies so far this year as the
country faces recession and runaway inflation rates.
Latin American stock indexes and currencies at 1952 GMT
Stock indexes daily %
Latest change
MSCI Emerging Markets 1054.67 -0.02
MSCI LatAm 2841.18 0.51
Brazil Bovespa 100920.09 0.19
Mexico IPC 43110.12 -0.48
Chile IPSA 5065.77 -0.16
Argentina MerVal 41655.86 1.28
Colombia IGBC 12606.02 0.04
Currencies daily %
change
Latest
Brazil real 3.8380 -0.50
Mexico peso 19.1873 -0.05
Chile peso 676.85 0.36
Colombia peso 3211 -0.46
Peru sol 3.294 -0.15
Argentina peso 42.4500 0.64
(interbank)
(Reporting by Sruthi Shankar in Bengaluru, Editing by Nick
Zieminski and Lisa Shumaker)
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