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EMERGING MARKETS-Chile peso tracks falling copper prices
November 28, 2017 / 4:57 PM / in 13 days

EMERGING MARKETS-Chile peso tracks falling copper prices

    By Bruno Federowski
    SAO PAULO, Nov 28 (Reuters) - The Chilean peso fell to a
three-month low on Tuesday, tracking a decline in prices of
copper, the country's chief export.
    Copper futures dropped 1.9 percent as traders booked
profits from a recent rally after the industrial metal breached
the $7,000 milestone on Monday.
    The profit-taking triggered declines in the Chilean currency
 for a second day, driving it to the weakest levels
since August.
    That contrasted with muted moves in other currencies in the
region, which kept to tight intervals as investors parsed U.S.
congressional testimony by President Donald Trump's nominee for
chair of the Federal Reserve, Jerome Powell.
    The U.S. central bank should "respond decisively" to any new
economic crisis, Powell said in a Senate committee hearing on
his nomination, positioning himself as an heir to the policies
of current Fed Chair Janet Yellen and her predecessor, Ben
Bernanke.
    Powell added that the Fed is likely to raise rates in
December but otherwise provided few clues about the central
bank's future actions.
    "Any hint over the trajectory of interest rates in 2018 will
greatly impact markets," Coinvalores brokerage analysts wrote in
a client note.
    Higher U.S. rates could reduce demand for high-yielding
currencies.
    
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                              daily %     YTD %
                                             change    change
                                 Latest              
 MSCI Emerging Markets             1147.33     0.26     32.71
                                                     
 MSCI LatAm                        2812.92      0.2     19.94
 Brazil Bovespa                   74455.21     0.54     23.62
 Mexico S&P/BVM IPC               47151.82    -0.26      3.31
                                                     
 Chile IPSA                        5053.14     0.41     21.72
 Chile IGPA                       25412.74      0.3     22.56
 Argentina MerVal                 27140.75     0.07     60.43
 Colombia IGBC                    10783.93    -0.36      6.48
 Venezuela IBC                      860.62     7.73    -97.29
                                                             
 Currencies                                 daily %     YTD %
                                             change    change
                                    Latest           
 Brazil real                        3.2152     0.13      1.06
                                                     
 Mexico peso                       18.5910    -0.01     11.58
                                                     
 Chile peso                         640.85    -0.43      4.66
 Colombia peso                     2998.22     0.09      0.11
 Peru sol                            3.233     0.09      5.60
                                                     
 Argentina peso (interbank)        17.3300    -0.03     -8.40
                                                     
 Argentina peso (parallel)           18.06     0.28     -6.87
                                                     
 
 (Reporting by Bruno Federowski)
  

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