August 25, 2017 / 3:47 PM / a year ago

EMERGING MARKETS-LatAm currencies firm after Yellen avoids discussing policy

    By Bruno Federowski
    SAO PAULO, Aug 25 (Reuters) - Latin American currencies
strengthened on Friday after U.S. Federal Reserve Chair Janet
Yellen refrained from commenting on monetary policy in a speech,
easing concerns of investors who had braced for a hawkish
    At a conference in Jackson Hole, Wyoming, Yellen said
regulations put in place after the 2007-2009 financial crisis
had strengthened the financial system without impeding economic
growth, and any future changes should remain modest.

    "Maybe Yellen didn't comment on the economy because she's
not very confident on the outlook," a New York-based portfolio
manager said.
    A batch of mixed U.S. economic figures have cast a shadow on
the nation's economic recovery, driving some investors to dial
back bets on an interest rate increase this year.
    A slower path of U.S. rate hikes could drive up demand for
high-yielding assets, benefiting currencies from emerging-market
    Currencies in Latin American strengthened between 0.1
percent and 1.2 percent, tracking a global decline in the U.S.
    Stock markets, however, were mixed, following a recent
stretch of gains. Mexico's S&P/BVM IPC index was nearly
flat, while Brazil's benchmark index slipped 0.2
    Shares of meatpacker JBS SA jumped after an
anti-corruption division within the Brazilian prosecutor
general's office on Thursday approved a leniency deal with its
controlling shareholder, J&F Investimentos SA.
    Also fostering appetite for JBS shares was a Reuters report
that state development bank BNDES is doing all it can to remove
Chief Executive Officer Wesley Batista, who is at the center of
a corruption scandal, from the company.
    Key Latin American stock indexes and currencies at 1520 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets               1086.99     0.42    25.53
 MSCI LatAm                          2890.79     0.04    23.46
 Brazil Bovespa                     70965.25    -0.24    17.83
 Mexico S&P/BVM IPC                 51467.08    -0.01    12.76
 Chile IPSA                          5169.41     0.32    24.52
 Chile IGPA                         25808.53     0.32    24.47
 Argentina MerVal                   23513.82     0.52    38.99
 Colombia IGBC                      10899.23    -0.26     7.61
 Venezuela IBC                     201173.22     0.71   534.51
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.1430     0.10     3.38
 Mexico peso                         17.6300     0.55    17.66
 Chile peso                           636.12     0.23     5.44
 Colombia peso                       2926.32     1.15     2.57
 Peru sol                              3.236     0.03     5.50
 Argentina peso (interbank)          17.2150    -0.03    -7.78
 Argentina peso (parallel)             18.23     0.16    -7.73
 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below