June 11, 2019 / 1:55 PM / 3 months ago

EMERGING MARKETS-Latam FX firm as dollar stays steady

    June 11 (Reuters) - Latin American currencies firmed against
a steady dollar on Tuesday with Mexico's peso extending gains
logged after U.S. President Donald Trump called off punitive
tariffs on Mexican goods, while Brazil's real looked set to
reverse last session's losses.
    The dollar steadied as investors focused on the upcoming G20
summit for any progress on the U.S.-China trade war that has
weighed on global growth. 
    Trump said he was ready to impose another round of tariffs
on Chinese imports if no progress is made in trade talks with
Chinese President Xi Jinping at the G20 summit later this month.

    Mexico's peso firmed 0.3% after logging its best day
in almost a year on Monday on news that Mexico and United States
had struck a migration deal that averted U.S. tariffs of an
initial 5% that were set to take effect this week. Washington
said tariffs may be revisited if not enough progress is made to
stem illegal immigration from Mexico.
    "This is unlikely to affect markets in the near term," said
Paul Donovan, chief economist at UBS Global Wealth Management.
    Mexico said Brazil may be one the countries that may need to
be brought in to control migration to the United States via the
Mexican border as it was among the countries that migrants first
reach in their journey north.
    Brazil's real rose 0.5%, recovering from last
session's 0.2% dip on worries over crucial pension reforms. 
    Political tensions were in play after leaked messages
published by a news website raised serious questions about the
impartiality of Brazil's current justice minister, Sergio Moro,
a former judge who sent former President Luiz Inacio Lula da
Silva to prison.
    Lawmakers in Brasilia suggested the controversy would not
slow their work on an overhaul of the country's social security
system, which the government considers essential to
kick-starting an economic recovery.
    Stocks in Sao Paulo hit their highest in 12 weeks
with commodity and energy heavyweights boosting the index on
higher iron ore, copper and oil prices.
    The bounce in prices of copper - Chile's main export - put
its currency on course to erase Monday's near 1% decline
posted on a surprise 50 basis point rate cut by the central bank
late on Friday.
    Colombia's peso touched an over-one-month high, with
higher oil prices helping the crude exporter's currency.
        
    Key Latin American stock indexes and currencies at 1340 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1031.42      0.92
                                        
 MSCI LatAm                    2768.17      0.79
                                        
 Brazil Bovespa               97906.89      0.45
                                        
 Mexico IPC                          -         -
                                        
 Chile IPSA                    5030.09      0.22
                                        
 Argentina MerVal                    -         -
                                        
 Colombia IGBC                       -         -
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    3.8663      0.44
                                        
 Mexico peso                   19.1500      0.35
                                        
 Chile peso                      693.2      0.88
                                        
 Colombia peso                 3241.95      0.42
 Peru sol                        3.333      0.00
                                        
 Argentina peso                      -         -
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew in Bengaluru; Editing by Will
Dunham)
  
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