By Agamoni Ghosh
March 19 (Reuters) - Latin American currencies rose against
the U.S. dollar on Tuesday, on expectations that U.S. Federal
Reserve policy makers will not hike interest rates at this
week's two-day policy meeting. Stocks in the region were mixed.
MSCI's index of Latin American currencies
gained, as the dollar neared a two-week low on bets that the Fed
will eschew any more rate hikes for the time being, with U.S.
and global growth slowing.
Last year, emerging market currencies saw significant
outflows due to the steady rise in U.S. borrowing rates.
"The markets are pricing in only one hike this year," said
Christian Lawrence, senior market strategist, LatAm FX,
Rabobank.
"The risk though will be if they aren't as dovish as
expected, then we will see a big sell-off in the EM space," he
added.
Higher oil prices also helped currencies for net crude
exporters in the region with Mexico's peso rising 0.2
percent.
Pemex, Mexico's debt-laden state oil company, said it
planned to triple the number of wells it will drill this year,
in a bid to grow crude output and reverse more than a decade of
declining production.
Pemex, which holds the largest debt of any Latin American
oil company, was downgraded by rating agencies S&P and Fitch
this year, leading to concern about Mexico's sovereign credit
rating.
"Yes, this a positive development but don't think we can say
all of Pemex's troubles have gone away. The energy market there
needs much more foreign investments and experiences ones," said
Lawrence.
The Mexican stock market which resumed trade after a
long weekend rose over 1 percent led by Latin American carrier
America Movil after the company said it will acquire
100 percent of Nextel's Brazil operations.
Stocks in Argentina and Colombia rose.
Sao Paulo-traded stocks eased off record high levels
dragged by financial and material stocks.
Rumo dropped over 5 percent after the logistics
company adjusted its 2019 outlook citing new accounting
standards.
Key Latin American stock indexes and currencies at 1440 GMT
Stock indexes daily %
Latest change
MSCI Emerging Markets 1070.49 0.12
MSCI LatAm 2894.44 0.71
Brazil Bovespa 99685.20 -0.31
Mexico IPC 42598.07 0.96
Chile IPSA 5321.81 -0.05
Argentina MerVal 35501.87 1.41
Colombia IGBC 13162.94 0.42
Currencies daily %
change
Latest
Brazil real 3.7815 0.23
Mexico peso 19.0381 0.10
Chile peso 665.8 0.10
Colombia peso 3097.28 0.05
Peru sol 3.302 -0.09
Argentina peso 40.0000 0.23
(interbank)
(Reporting by Agamoni Ghosh in Bengaluru; Editing by David
Gregorio)
