January 9, 2018 / 5:13 PM / a year ago

EMERGING MARKETS-LatAm currencies weaken as U.S. dollar rebounds from sell-off

    By Bruno Federowski
    SAO PAULO, Jan 9 (Reuters) - Latin American currencies
weakened on Tuesday as the U.S. dollar rebounded from an early
2018 sell-off that drove it to the lowest in more than three
months.
    Emerging market currencies kicked off the year with a rally
as solid economic growth figures drove investors away from the
greenback and toward riskier assets.
    That move faded in recent days as expectations that the U.S.
Federal Reserve will increase rates three times in 2018,
potentially draining funds away from high-yielding assets, grew
stronger.
    Currencies from Brazil, Mexico, Chile
 and Colombia slipped between 0.2 percent and 0.4
percent on Tuesday.
    Stock markets were also down across the region on
profit-taking, with Brazil's benchmark Bovespa stock index
 steering away from all-time records.
    Blue-chips, such as lenders Itaú Unibanco Holding SA
 and Banco Bradesco SA, and miner Vale SA
, led the drop.
    Shares of Centrais Elétricas Brasileiras SA were
among the biggest declines on news that regulators could ask the
state-controlled power utility to return 1 billion reais to
government coffers due to irregular subsidies.
    
    Key Latin American stock indexes and currencies at 1720 GMT:
 Stock indexes                             daily %   YTD %
                                            change  change
                                 Latest             
 MSCI Emerging Markets            1204.11    -0.23    4.18
                                                    
 MSCI LatAm                       2954.27    -0.92    5.43
 Brazil Bovespa                  79048.28    -0.42    3.46
 Mexico IPC                      49680.15    -0.63    0.66
 Chile IPSA                       5697.36    -0.14    2.39
 Chile IGPA                      28662.76    -0.12    2.44
 Argentina MerVal                32330.61    -0.06    7.53
 Colombia IGBC                   11827.33    -0.22    4.02
 Venezuela IBC                    1290.07     1.54  -95.93
                                                          
 Currencies                                daily %   YTD %
                                            change  change
                                                    
                                   Latest           
 Brazil real                       3.2475    -0.37    2.03
                                                    
 Mexico peso                      19.2900    -0.34    2.12
                                                    
 Chile peso                           608    -0.43    1.09
 Colombia peso                       2912    -0.20    2.40
 Peru sol                           3.217    -0.06    0.62
                                                    
 Argentina peso (interbank)       18.9600     0.37   -1.90
                                                    
 Argentina peso (parallel)           19.5     0.41   -1.38
                                                    
 
 (Reporting by Bruno Federowski; Editing by Tom Brown)
  
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