February 22, 2018 / 10:45 PM / 3 months ago

EMERGING MARKETS-Mexico peso firms on rate hike bets, weaker U.S. dollar

    By Miguel Angel Gutierrez and Sheky Espejo
    MEXICO CITY, Feb 22 (Reuters) - Latin American currencies
gained on Thursday as the U.S. dollar's rally from a three-year
low last week ran out of steam, with the Mexican peso
strengthening more than 1 percent on strong bets Mexico's
central bank could again hike interest rates. 
    Minutes of the latest monetary policy meeting showed
Mexico's central bank board members are concerned about
persistent inflation pressures and risks that the local currency
could be hammered, adding to consumer price pressures.

    Mexico's peso strengthened 1.15 percent on Thursday
even as consumer prices in Latin America's second largest
economy rose less than expected in early February.
    "The probability that Banco de Mexico keeps hiking the key
interest rate is still high," said Gabriela Siller, head of
economic analysis at Banco BASE.
    Meanwhile, Chile's peso gained nearly 0.5 percent,
while the Colombian peso rose 0.65 percent as the
greenback fell against a basket of international currencies.
    Stock markets in Latin America were mostly higher, with
Brazil's benchmark Bovespa stock index rising for a
seventh straight session.
    Bank Banco do Brasil rose more than 4 percent
after posting strong quarterly earnings.
    
    Key Latin American stock indexes and currencies at 2105 GMT:
    
 Stock indexes                Latest         Daily  YTD pct
                                               pct   change
                                            change  
 MSCI Emerging Markets           1,201.83    -0.65     4.42
                                                    
 MSCI LatAm                      3,146.42     0.86    10.31
 Brazil Bovespa                 86,620.48     0.66    13.37
 Mexico IPC                     48,950.64     0.86    -0.82
 Chile IPSA                      5,726.09     0.34     2.90
 Chile IGPA                     28,711.57     0.27     2.61
 Argentina MerVal               33,124.77     0.25    10.17
 Colombia IGBC                  11,869.75     0.92     4.39
 Venezuela IBC                   4,681.80      -11   -85.23
                                                           
 Currencies                        Latest    Daily  YTD pct
                                               pct   change
                                            change  
 Brazil real                       3.2494    -0.05     1.97
 Mexico peso                      18.6225     1.15     5.78
 Chile peso                         592.5     0.47     3.74
 Colombia peso                      2,858     0.65     4.34
 Peru sol                           3.247     0.22    -0.31
 Argentina peso (interbank)       19.9450    -0.10    -6.74
                                                    
 Argentina peso (parallel)          20.02     0.45    -3.95
                                                    
                                                           
 
 (Writing by Anthony Esposito; Editing by Tom Brown)
  
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