November 27, 2019 / 7:18 PM / 15 days ago

EMERGING MARKETS-Latam FX hit by strong dollar; growing unrest knocks down Chilean, Colombian peso

    * Chilean peso at new low as violence resurges 
    * Brazil's real falls for fourth straight day
    * Dollar lifted by better-than-expected U.S. data

 (Updates prices; adds quote, details)
    By Medha Singh
    Nov 27 (Reuters) - Most Latin American currencies took a hit
on Wednesday, as the dollar firmed on upbeat U.S. economic data,
while currencies in Chile and Colombia dropped further on
growing anti-government protests in those countries.
    The Colombian peso declined 0.8%, down for the fourth
day, as a week of demonstrations against rumored government
economic plans, corruption and police violence rolled
on.
    Colombian stocks shed 1.4% as the unrest in the
country dimmed risk appetite.
    Chile's peso closed at a new low as violence resurged
in the South American nation following weeks of protests over
inequality and inadequate social services.
    The Brazilian central bank sold dollars on the spot currency
market for the third time in three days as the real
continued to weaken, threatening to hit another record low.
    The currency, which has been battered this month also thanks
to a failed oil auction, fell as much as 1.2% to a record low of
4.770 on Tuesday. 
    "​What's interesting is that inflation (in Brazil) has in
fact remained benign as the real has depreciated (but) that's
not likely to last," said Peter Cecchini, global chief market
strategist at Cantor Fitzgerald.
    Meanwhile, stocks in the region were mostly higher, with
those in Brazil Bovespa and Mexico posting modest
gains and Argentina's Merval up more than 5% due to
portfolio recomposition after recent losses.
    Brazilian equities are expected to outperform their Latin
America peers next year, due to record-low interest rates and a
pending lineup of market-friendly economic reforms, according to
a Reuters poll.
    Traders also signaled fairly thin volumes in a quiet session
ahead of the U.S. Thanksgiving holiday on Thursday.
    
    Key Latin American stock indexes and currencies at 1903 GMT:
    
 Stock indexes                                    daily %
                                    Latest         change
 MSCI Emerging Markets                  1052.74      0.47
 MSCI LatAm                             2637.20      0.46
 Brazil Bovespa                       107556.92      0.46
 Mexico IPC                            42998.53      0.34
 Chile IPSA                             4597.15      0.75
 Argentina MerVal                      33860.81     5.442
 Colombia IGBC                          1573.78     -1.43
                                                         
 Currencies                                       daily %
                                                   change
                                         Latest  
 Brazil real                             4.2534     -0.35
 Mexico peso                            19.5460     -0.16
 Chile peso                              819.75     -2.74
 Colombia peso                             3503     -0.83
 Peru sol                                 3.384      0.00
 Argentina peso (interbank)             59.7700      0.33
                                                 
 
 (Reporting by Medha Singh and Shreyashi Sanyal in Bengaluru
Editing by Alistair Bell)
  
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