December 29, 2017 / 1:53 AM / 10 months ago

EMERGING MARKETS-Mexico peso slips on central bank inflation concern

 (Rewrites with Mexican central bank comment on Mexican peso)
    By Bruno Federowski
    SAO PAULO/MEXICO CITY, Dec 28 (Reuters) - Mexico's peso
weakened on Thursday after the central bank expressed concern
the inflation outlook has deteriorated, adding the currency
could depreciate if talks to renegotiate the North American Free
Trade Agreement are unfavorable.
    The minutes of the Mexican central bank's Dec. 14 meeting
reinforced a more hawkish tone under its new boss, with a
majority of the four-person board saying that reaching the 3
percent inflation target will take longer than anticipated.
    The Mexican peso slipped 0.24 percent.
    Brazil's currency was virtually flat and the Chilean
peso was up 0.22 percent after data showed a widening
U.S. trade gap offset figures demonstrating a continuingly firm
labor market.
    Traders closely track U.S. economic data in search of clues
to the pace of U.S. interest rate increases in coming months.
    Though employment has shown signs of consistent strength,
mixed reports on economic activity have fueled bets that the
Federal Reserve will be slow in tightening policy, supporting
demand for high-yielding emerging market currencies.
    Traders mostly kept quiet, with little news on the horizon
ahead of the New Year's holiday. 
    Brazil's benchmark Bovespa stock index rose 0.4
percent, led by shares of loyalty program Smiles Fidelidade SA
 after it announced it will cut prices of tickets sold
by airline Gol Linhas Aéreas Inteligentes SA.
        
    Latin American stock indexes and currencies at 2100 GMT:
    
 Stock indexes                        daily %    YTD %
                             Latest    change   change
 MSCI Emerging Markets       1153.31     0.78    32.72
                                               
 MSCI LatAm                  2816.31     0.62    19.58
                                               
 Brazil Bovespa             76402.08     0.43    26.86
                                               
 Mexico IPC                 48852.87     0.41     7.03
                                               
 Chile IPSA                  5550.93     0.99    33.71
                                               
 Chile IGPA                 27910.38      0.9    34.61
                                               
 Argentina MerVal           30024.24     2.85    77.47
                                               
 Colombia IGBC              11436.52     0.58    12.92
                                               
 Venezuela IBC               1262.80        0   -96.02
                                               
                                                      
 Currencies                           daily %    YTD %
                                       change   change
                              Latest           
 Brazil real                  3.3141    -0.02    -1.96
                                               
 Mexico peso                 19.7300    -0.24     5.14
                                               
 Chile peso                   614.53     0.22     9.14
                                               
 Colombia peso                2981.8    -0.25     0.66
 Peru sol                       3.24     0.00     5.37
                                               
 Argentina peso              19.2100    -3.98   -17.36
 (interbank)                                   
                                               
 Argentina peso                19.22    -0.88   -12.49
 (parallel)                                    
                                               
                                                      
 
 (Reporting by Bruno Federowski; Editing by Steve Orlofsky and
Grant McCool)
  
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