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

EMERGING MARKETS-Latam FX rises as dollar pressure eases, Argentine peso falls

    * Brazil's real leads gains as inflation increases
    * Argentine peso the sole loser
    * Latam stocks up in afternoon trade

 (Updates prices throughout, adds comments)
    By Ambar Warrick and Shreyashi Sanyal
    April 5 (Reuters) - Most Latin American currencies rose on
Monday as the dollar retreated slightly from recent gains, while
Argentina's peso dropped after President Alberto Fernandez
tested positive for COVID-19.
    Chile's peso hit a more-than one-month high, while
Brazil's real rose 0.9% at 5.66, leading gains among its
peers on waning pressure from the greenback, which retreated
slightly from recent peaks after stellar U.S. payrolls data.
 
    The real also benefited from increasing inflation trends,
which have spurred monetary policy tightening measures by
Brazil's central bank.
    Still, the real has lagged its peers by a wide margin this
year as the country struggles to roll out vaccinations amid a
rising death toll from COVID-19.
    "The deterioration in the pandemic outlook and persistently
high fiscal noises make us estimate the USD/BRL at 5.35 by end
2021 and 5.20 by end 2022," said strategists at Rabobank. 
    Increased bullishness on the dollar and rising Treasury
yields have also weighed on emerging market currencies, with
those in Latam bearing the brunt of the pressure due to a
damaging resurgence of the coronavirus in the region.
    A mild pullback in U.S. benchmark yields benefited emerging
market currencies on Monday. 
    "Our view to start the year was partly based on the enormous
gap between the green and black lines, indicating that the USD
was too weak relative to the global outlook," analysts at TD
Securities said.  
    "That gap has been closed, and now a new open has opened up
in the other direction. It's not huge, but we think there's room
for a USD pause in the interim."
    Argentina's peso lagged its regional peers on the day
after President Fernandez tested positive for the virus,
although doctors called the case mild.
    Most Latin American stocks rose. Brazilian iron ore miner
Vale was among the top boosts to the Bovespa
benchmark index after it announced plans to buy back
shares. 
    Key Latin American stock indexes and currencies at 1822 GMT:
    
           Stock indexes                    Latest    Daily %
                                                       change
 MSCI Emerging Markets                       1339.26      0.08
 MSCI LatAm                                  2325.72      1.97
 Brazil Bovespa                            117025.80      1.54
 Mexico IPC                                 48273.44      2.17
 Chile IPSA                                  4870.24     -0.31
 Argentina MerVal                           48222.50       0.5
 Colombia COLCAP                             1321.36      0.35
                                                              
              Currencies                    Latest    Daily %
                                                       change
 Brazil real                                  5.6653      0.85
 Mexico peso                                 20.3208     -0.13
 Chile peso                                    721.7     -0.65
 Colombia peso                               3672.75     -0.51
 Peru sol                                      3.696      1.26
 Argentina peso (interbank)                  92.2300     -0.25
                                                      
 Argentina peso (parallel)                       138      2.17
                                                      
 
    

 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru;
Editing by Dan Grebler)
  
for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up