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EMERGING MARKETS-Latam currencies drop for 3rd day on U.S. jobs data
November 27, 2013 / 5:11 PM / 4 years ago

EMERGING MARKETS-Latam currencies drop for 3rd day on U.S. jobs data

RIO DE JANEIRO, Nov 27 (Reuters) - Latin American currencies
weakened for a third consecutive session on Wednesday as strong
U.S. jobs and consumer sentiment data supported the case for an
early withdrawal of U.S. stimulus, which could hurt investors'
appetite for risk assets.
    Fears that the U.S. Federal Reserve may start winding down
its bond-buying program early next year increased after a report
showed the number of Americans filing new claims for
unemployment benefits unexpectedly fell last week. 
    Another report also showed U.S. consumer sentiment improved
more than anticipated by economists in November. 
    "Markets remain cautious, worried about U.S. stimulus and
Brazil's fiscal situation," said Jose Carlos Amado, a trader
with Renascenca brokerage in Sao Paulo.
    * Brazil's real  lost 0.7 percent to 2.3122 per
dollar, crossing its two-week moving average of 2.3014.
    * Investors in the Brazilian real are bracing for Friday's
release of the government's fiscal performance for October,
after an unexpected primary deficit of 9 billion reais in
September fanned concerns about President Dilma Rousseff's
commitment to fiscal targets.
    * Losses in the real were curbed by regular central bank
auctions of currency swaps, derivatives that mimic a sale of
dollars in the futures market. On Wednesday the bank sold 10,000
swaps through its daily intervention program and another 20,000
swaps to roll over similar contracts that expire on Dec. 2.
Policymakers have so far rolled over nearly $8 billion of the
$10.1 billion worth of swaps that mature next month.
    * Brazil's interest rate futures were modestly
higher as investors consolidated bets that the central bank will
raise its benchmark Selic rate by half a percentage point to 10
percent later on Wednesday, signaling in their post-meeting
statement that the monetary tightening cycle will continue for
longer. 
    * Mexico's peso  lost 0.2 percent,
outperforming its Latin American peers as investors remain
optimistic about the country's economic outlook due to progress
in local reforms.
    * The Chilean peso lost 0.8 percent as the price of
copper, the country's main export product, slid 0.7
percent on the London Metal Exchange.

 Latin American currencies at 1645 GMT:
    
 Currencies                        daily %    YTD %
                                    change   change
                           Latest           
 Brazil real               2.3122    -0.74   -11.77
                                            
 Mexico peso              13.0785    -0.20    -1.64
                                            
 Chile peso              526.5000    -0.85    -9.08
                                            
 Colombia peso          1928.5000    -0.08    -8.43
                                            
 Peru sol                  2.8010     0.04    -8.93
                                            
 Argentina peso            6.1075    -0.20   -19.57

 Argentina peso            9.7300     0.82   -30.32

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