July 23, 2018 / 3:23 PM / 3 months ago

EMERGING MARKETS-LatAm currencies walk back gains after rally sparked by Trump

    SAO PAULO, July 23 (Reuters) - All major Latin American
currencies fell against the dollar on Monday, paring gains
following a rally last week sparked by public comments from U.S.
President Donald Trump advocating a weaker greenback.
    Regional currencies, particularly Brazil's real, surged
after Trump criticized the Federal Reserve's policy on raising
interest rates in an interview with CNBC on Thursday, saying it
eroded the United States' competitive edge, as did a strong
dollar.
    The real rallied some 1.94 percent on Friday, also
helped by a key alliance struck by market-friendly presidential
candidate Geraldo Alckmin, while Chile's peso was also
up over a half a percent.
    Traders said any resumed slide in the real should be milder
than the dollar's drop late last week, given the absence of any
notable triggers, although the U.S. currency did bounce off of
two-week lows it had hit worldwide on Monday.
    The real had fallen 0.63 percent in late morning trade,
while the Mexican peso and the Chilean peso fell 0.61
percent and 0.52 percent, respectively.
    "The agenda is quiet," said Fernanda Consorte, a currency
strategist at Sao Paulo brokerage Ourinvest. "There's no reason
for a correction of the same magnitude of the fall on Friday."
    Equities markets were generally mixed, with Brazil's
benchmark Bovespa index among the biggest losers,
falling 0.48 percent in late morning trade, after opening in the
black. The index performed well last week, rising some 1.24
percent on Friday alone.
    Among the more significant losers was telecom firm TIM
Participacoes SA, the local unit of Telecom Italia
SpA, which fell almost 2 percent after Barclays
analysts cut their price target on the stock following a change
of chief executive.
    The biggest gainer was electronics chain Via Varejo SA
, whose shares rose some 4 percent ahead of the firm's
quarterly results release on Monday evening.
    
Key Latin American stock indexes and currencies at 1436 GMT:
    
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1068.28     -0.17     -7.63
                                                  
 MSCI LatAm                    2626.08     -0.87     -6.33
                                                  
 Brazil Bovespa               78190.40     -0.48      2.34
                                                  
 Mexico IPC                   48937.30      0.06     -0.85
                                                  
 Chile IPSA                    5411.03     -0.35     -2.76
                                                  
 Chile IGPA                   27258.46     -0.29     -2.58
                                                  
 Argentina MerVal             27567.21     -0.21     -8.31
                                                  
 Colombia IGBC                12255.95      0.28      7.79
                                                  
 Venezuela IBC               100593.76      1.08   7863.79
                                                  
                                                          
 Currencies                              daily %     YTD %
                                          change    change
                                Latest            
 Brazil real                    3.7968     -0.63    -12.73
                                                  
 Mexico peso                   19.1505     -0.61      2.86
                                                  
 Chile peso                        663     -0.52     -7.29
                                                  
 Colombia peso                 2891.67     -0.84      3.12
 Peru sol                         3.28     -0.15     -1.31
                                                  
 Argentina peso                27.6700     -0.33    -32.78
 (interbank)                                      
                                                  
 Argentina peso                   28.7     -0.17    -33.00
 (parallel)                                       
                                                  
 
    
    

 (Reporting by Gram Slattery and Iuri Dantas; additional
reporting by Paula Arend Laier; editing by Jonathan Oatis)
  
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