July 19, 2013 / 5:41 PM / 4 years ago

EMERGING MARKETS-Latam currencies weaken in synch with Wall St

RIO DE JANEIRO, July 19 (Reuters) - Most Latin American
currencies weakened on Friday as investors' appetite ebbed in
synch with a retreat on Wall Street, where key U.S. stock
indexes slipped from recent records.
    Latin American currencies have gained this week as U.S.
Federal Reserve Chairman Ben Bernanke reassured investors that
the bank's monetary stimulus, which has supported global
appetite for risk during the past several years, should remain
in place for a little longer.
    Market sentiment was fragile at the end of the week,
however, as disappointing earnings at technology companies
weighed on U.S. stock markets. 
    * Brazil's real  lost 0.3 percent even after
the central bank sold 20,000 traditional currency swaps,
derivative contracts that mimic the sale of dollars in the
futures market. The auction was designed to roll over similar
contracts that expire on Aug 1 and had little market impact.
 
    * Brazil's Finance Minister Guido Mantega told Reuters
emerging market currencies will likely stabilize at weaker
levels as Bernanke's more dovish testimony about the withdrawal
of stimulus measures cleared up a series of "confusing" messages
initially sent by U.S. policymakers. 
    * Yields paid on Brazil's interest-rate futures 
mostly declined, especially those of longer-dated contracts,
after inflation measured by the IPCA-15 came in slightly below
the ceiling of a government target and investors' forecasts.
 
    * Brazil's interest-rate contract maturing in Jan 2014
, one the most traded, was flat at from Thursday's
adjusted close, at 8,75 percent, while yields paid on contracts
expiring in Jan 2017 dropped 7 basis points to 10.34
percent.
    * Some investors in Brazil's interest-rate market wondered
if lower inflation prints would encourage the central bank to
curtail its current monetary tightening cycle. Still, some 80
percent of those investors bet policymakers will raise the Selic
rate by half a percentage point in August, to 9 percent a year,
Reuters data showed. 
    * Mexico's peso dipped 0.1 percent to 12.5250 per
dollar, after reaching in the previous session an intraday mark
of 12.4272, its strongest level since the end of May. 
    * Chile's peso  lost 0.5 percent against the
dollar, weighed down by a 0.3 percent drop in the price of
copper, the country's main export product.

    Latin American FX prices at 1925 GMT:
    
 Currencies                         daily %    YTD %
                                     change   change
                            Latest           
 Brazil real                2.2326    -0.32    -8.63
                                             
 Mexico peso               12.5250    -0.06     2.71
                                             
 Chile peso               502.9000    -0.54    -4.81
                                             
 Colombia peso           1880.0000     0.26    -6.06
                                             
 Peru sol                   2.7670     0.04    -7.81
                                             
 Argentina peso             5.4600    -0.18   -10.03

 Argentina peso             8.8000    -0.57   -22.95

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