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EMERGING MARKETS-Chile peso slumps ahead of elections, Mexico firms
November 15, 2013 / 6:31 PM / 4 years ago

EMERGING MARKETS-Chile peso slumps ahead of elections, Mexico firms

MEXICO CITY, Nov 15 (Reuters) - Chile's peso weakened to an
almost two-year low on Friday on bets center-left candidate
Michelle Bachelet will win the presidency this weekend for a
second time, while Mexico's peso firmed to cap a strong week. 
    Latin American currencies got a lift this week on bets the
U.S. Federal Reserve, under the likely leadership of Janet
Yellen, will not move quickly to cut back monetary stimulus that
has supported demand for riskier assets around the globe.
    * Chile's peso shed 0.42 percent to 521 per dollar.
Earlier this week it hit 524, its weakest since late 2011. 
    * Ex-president Michelle Bachelet is projected to easily win
Sunday's elections. Her pledge to raise corporate taxes and seek
more wealth redistribution has pressured the currency in recent
weeks. 
    * Strategists at CitiFX said the Chilean peso could rally
back against the dollar if voters do not give Bachelet's
coalition a three-fifths majority in the senate, which would be
needed to pass major reforms.   
    * The Chilean peso has also been hurt by concerns that
prices for copper, the country's top export, will keep slumping
amid a global supply glut in the industrial metal. 
    * Mexico's peso  firmed a slight 0.17 percent,
to gain just shy of 2 percent against the dollar during the
week, breaking back past the psychological 13-per-dollar level
to trade at 12.94 per dollar. 
    * The Mexican peso's gains marked its best week since
mid-September. Some strategists expected the currency to make
further ground toward the 12.80 level.
    * Brazil's market was closed for a holiday. The Brazilian
real bounced back from a more than two-month low this week,
helped by the view the Fed as well as local central bank
intervention will prop up the currency. 
    * Brazil's central bank has been selling currency swaps to
provide investors with a hedge against a possible depreciation
of the real, helping reduce demand for dollars on the spot
market.

   
 Latin American currencies at 1740 GMT
    
 Currencies                          daily %    YTD %
                                      change   change
                             Latest           
 Brazil real                 2.3136     0.32   -11.83
                                              
 Mexico peso                12.9410     0.17    -0.59
                                              
 Chile peso                521.0000    -0.42    -8.12
                                              
 Colombia peso            1915.3300     0.53    -7.80
                                              
 Peru sol                    2.7980     0.00    -8.83
                                              
 Argentina peso              5.9925    -0.04   -18.02

 Argentina peso              9.9000     0.91   -31.52

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