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EMERGING MARKETS-Mexico's peso firms as central bank boosts intervention
October 25, 2017 / 3:13 PM / 25 days ago

EMERGING MARKETS-Mexico's peso firms as central bank boosts intervention

    By Bruno Federowski
    SAO PAULO, Oct 25 (Reuters) - The Mexican peso strengthened
on Wednesday after the central bank stepped in to cushion the
currency's recent decline, lifting it from six-month lows.
    The peso firmed 0.9 percent, making it the top
gainer among currencies in the region and paring its losses this
month to around 4 percent.
    Mexico's currency commission said on Wednesday it would
increase the amount of dollars auctioned in foreign currency
hedges following a period of market volatility.
    Strategists at BNP Paribas conjectured that the intervention
was meant to curb price pressures stemming from a weaker peso,
which could delay policymaker efforts to slow down inflation.
    Concerns over the future of Mexico's trade ties with the
United States have hammered the peso in recent weeks as fears
grew that U.S. President Donald Trump could make good on his
threats to scrap the North American Free Trade Agreement
(NAFTA).
    Brazilian markets seesawed on Wednesday, with the currency
 up 0.2 percent and stocks down by the same amount.
    Traders mostly avoided making big bets ahead of a
widely-expected lower house vote on whether to put President
Michel Temer on trial in the Supreme Court for corruption
charges.
    Investors largely bet he will dodge the charges, but a
smaller show of support could further delay his efforts to
streamline the costly social security system, which are seen as
critical to boosting long-term economic growth.
    Shares in retailer Lojas Renner SA and motor
maker WEG SA rose, however, after posting their
third-quarter earnings. Despite missing expectations for net
income, a 15 percent annual increase in WEG's operating profits
supported demand for the stock.

    Key Latin American stock indexes and currencies at 1500 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
                                   Latest              
 MSCI Emerging Markets              1115.07      0.16    29.12
 MSCI LatAm                         2882.61         0    23.16
 Brazil Bovespa                    76164.29     -0.24    26.46
 Mexico S&P/BVM IPC                49471.17     -1.37     8.39
 Chile IPSA                         5515.08     -0.38    32.85
 Chile IGPA                        27654.63     -0.34    33.38
 Argentina MerVal                  27710.39     -1.07    63.79
 Colombia IGBC                     10918.60      0.42     7.81
 Venezuela IBC                       683.83      2.99   -97.84
                                                              
 Currencies                                   daily %    YTD %
                                               change   change
                                                       
                                     Latest            
 Brazil real                         3.2405      0.19     0.27
 Mexico peso                        19.0605      0.89     8.83
 Chile peso                          629.56      0.40     6.53
 Colombia peso                      2983.97     -0.23     0.59
 Peru sol                             3.234      0.06     5.57
 Argentina peso (interbank)         17.4200      0.46    -8.87
                                                       
 Argentina peso (parallel)            18.05      0.50    -6.81
                                                       
 
 (Reporting by Bruno Federowski; Editing by Paul Simao)
  

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