October 25, 2017 / 10:02 PM / a year ago

EMERGING MARKETS-Mexico's peso firms as central bank boosts intervention

 (Updates prices)
    By Bruno Federowski
    SAO PAULO, Oct 25 (Reuters) - The Mexican peso strengthened
on Wednesday after the central bank stepped in to cushion the
currency's recent decline, lifting it from six-month lows.
    The peso firmed 0.99 percent, making it the top
gainer among currencies in the region and paring its losses this
month to around 4 percent.
    Mexico's currency commission said on Wednesday it would
increase the amount of dollars auctioned in foreign currency
hedges following a period of market volatility.
    Strategists at BNP Paribas said that the intervention was
meant to curb price pressures stemming from a weaker peso, which
could delay policymaker efforts to slow down inflation.
    Concerns over the future of Mexico's trade ties with the
United States have hammered the peso in recent weeks as fears
grew that U.S. President Donald Trump could make good on his
threats to scrap the North American Free Trade Agreement
    The Mexican stock exchange closed down 2.55 percent as
shares of America Movil fell as much as 6.93 percent.
On Tuesday, the telecoms firm reported a net loss of 9.55
billion pesos ($501.63 million) for the third quarter, hit by a
costly Colombian arbitration panel ruling.
    Brazilian markets seesawed on Wednesday, with the currency
 up 0.32 percent and stocks up 0.42 percent.
    Traders mostly avoided making big bets ahead of a widely
expected lower house vote on whether to put President Michel
Temer on trial in the Supreme Court for corruption charges.
    Investors largely bet he will dodge the charges, but a
smaller show of support could further delay his efforts to
streamline the costly social security system, which are seen as
critical to boosting long-term economic growth.

    Key Latin American stock indexes and currencies at 2010 GMT:
 Stock indexes                                 daily %      YTD %
                                Latest          change     change
 MSCI Emerging Markets              1113.49       0.02      29.12
 MSCI LatAm                         2887.35       0.16      23.16
 Brazil Bovespa                    76671.13       0.42      27.30
 Mexico IPC                        48876.46      -2.55       7.08
 Chile IPSA                         5495.09      -0.74      32.37
 Chile IGPA                        27566.78      -0.66      32.95
 Argentina MerVal                  27865.83      -0.51      64.71
 Colombia IGBC                     10956.49       0.77       8.18
 Venezuela IBC                       710.85       7.06     -97.76
 Currencies                                    daily %      YTD %
                                                change     change
 Brazil real                         3.2339       0.32       0.47
 Mexico peso                        19.0420       0.99       8.94
 Chile peso                           628.8       0.52       6.66
 Colombia peso                      2994.26      -0.58       0.24
 Peru sol                             3.234       0.06       5.57
 Argentina peso (interbank)         17.4850       0.09      -9.21
 Argentina peso (parallel)            18.05       0.50      -6.81

($1 = 19.0378 Mexican pesos)

 (Reporting by Julia Love; Editing by Daina Beth Solomon and
Lisa Shumaker)
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