for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up

EMERGING MARKETS-Mexican peso gains; Colombian peso winner of the week

    * Colombian peso set to add 2% this week
    * Peruvian sol logs steep weekly losses
    * Brazil's real rises on positive econ data

    By Ambar Warrick
    Nov 13 (Reuters) - Mexico's peso rose on Friday after the
central bank held interest rates, while most other Latin
American currencies fell and were set for weekly losses as
initial optimism over a coronavirus vaccine gave way to
uncertainty over its delivery.
    The peso rose 0.7% after the bank held rates on
Thursday, saying that it gave policymakers more options to
establish inflation trends and observe the country's economic
recovery.
    Still, the currency was set to end the week largely
unchanged, having pared most of its initial gains this week on
optimism over the vaccine, and expectations of stabler U.S.
trade policy after Joe Biden's presidency win.
    "(The central bank) is making it clear that it wants to be
certain that inflation continues to move towards the middle of
its target range at 3%," Elisabeth Andreae, FX and EM analyst at
Commerzbank wrote in a note.
    "The peso’s reaction to the rate decision remained muted as
the central bank left the door open for further monetary policy
easing. The imminent end of the rate cut cycle is largely priced
in." 
    Brazil's real rose 0.3% after a central bank
survey showed the country's economic activity rose more than
expected in September, pointing to a strong performance in the
third quarter. 
    The real was set to lose slightly for the week.
    Colombia's peso fell slightly for the day, but was
set to outperform its peers for the week with a 2% gain,
recently taking support from the government trimming its
expectations for an economic contraction in 2020.
    The country also outlined regulatory changes for pension
funds to have more flexibility about investment options, in
order to increase liquidity and help an economic recovery.

    While emerging markets are set to eventually benefit from
risk-driven capital inflows with the advent of a vaccine, they
are likely to face shore-term headwinds from uncertainty over
when the vaccine will be released.
    Peru's sol was set for steep weekly losses after the
ouster of President Martin Vizcarra sparked political unrest in
the country.
    Argentina's central bank hiked interest rates on Thursday to
rein in rampant inflation. But the peso showed little
reaction, given that it is subject to strict capital controls.
 
    Latin American stocks fell 0.3%, but were
set to gain for the week as expectations of easy monetary policy
saw yield-hungry investors buying into equities. 
    Elsewhere, Russia raised 2 billion euros ($2.36 billion) in
Eurobonds on Thursday as it tapped the global debt market for
the first time this year.
    
    Key Latin American stock indexes and currencies: 
    
                              Latest       Daily % change
 MSCI Emerging Markets         1187.63                  0.47
                                        
 MSCI LatAm                    2064.36                 -0.34
                                        
 Brazil Bovespa              103287.02                  0.76
                                        
 Mexico IPC                          -                     -
                                        
 Chile IPSA                    3961.01                  1.14
                                        
 Argentina MerVal                    -                     -
                                        
 Colombia COLCAP               1207.21                     - Currencies             Latest       Daily % change
 Brazil real                    5.4626                  0.28
                                        
 Mexico peso                   20.4838                  0.73
                                        
 Chile peso                      767.5                 -0.99
                                        
 Colombia peso                  3643.3                 -0.05
 Peru sol                       3.6358                  0.11
                                        
 Argentina peso                79.7100                 -0.18
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru, Editing by William
Maclean)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up