April 20, 2018 / 3:02 PM / 7 months ago

EMERGING MARKETS-Mexico, Colombia pesos drop as Trump comments weigh on oil

    By Bruno Federowski
    BRASILIA, April 20 (Reuters) - The Mexican and Colombian
pesos weakened sharply on Friday after U.S. President Donald
Trump said crude prices were artificially high, hammering oil
futures.
    Trump wrote in a post in Twitter that oil prices are
"artificially very high" and "will not be accepted," triggering
a selloff in oil markets.
    Currencies from oil-exporting economies followed along, with
the Mexican and Colombian pesos both down over 1
percent. 
    The United States cannot legally influence oil prices other
than through releasing oil from its strategic reserves which it
has done occasionally, most recently last year in the wake of
Tropical Storm Harvey.
    The slump in oil prices, coupled with higher U.S. Treasury
yields, also damped demand for risky emerging market assets,
driving currencies throughout Latin America lower.
    "The dollar is trading higher worldwide and we are tracking
that movement," Rio Gestão analyst Bernard Gonin said.
    Risk-aversion helped to pull down most of the region's stock
markets, though losses were limited by local issues.
    Brazil's benchmark Bovespa stock index declined 0.8
percent, but shares of Embraer SA rose as much as 7
percent after a local media report said tie-up talks between the
Brazilian planemaker and Boeing Co were at an advanced
stage.
    Shares of Hypera SA dropped the most in the index
after police searched the houses of several high-ranking
executives.
    
    Key Latin American stock indexes and currencies at 1445 GMT:
 Stock indexes                               daily %    YTD %
                                    Latest    change   change
 MSCI Emerging Markets              1166.45    -1.49     2.22
                                                      
 MSCI LatAm                         3022.80    -1.51     8.52
 Brazil Bovespa                    85172.57    -0.76    11.48
 Mexico IPC                        48520.36    -0.46    -1.69
 Chile IPSA                         5686.63    -0.19     2.19
 Chile IGPA                        28513.71     0.17     1.90
 Argentina MerVal                  31253.46    -0.09     3.95
 Colombia IGBC                     12413.62    -0.29     9.17
                                                             
 Currencies                                  daily %    YTD %
                                              change   change
                                     Latest           
 Brazil real                         3.4127    -0.64    -2.91
                                                      
 Mexico peso                        18.6820    -1.25     5.44
                                                      
 Chile peso                           597.2    -0.32     2.92
 Colombia peso                       2757.6    -0.93     8.14
 Peru sol                             3.225    -0.19     0.37
                                                      
 Argentina peso (interbank)         20.1700     0.00    -7.78
                                                      
 Argentina peso (parallel)             20.5     0.24    -6.20
                                                      
 
 (Reporting by Bruno Federowski; Editing by Bernadette Baum)
  
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