Most Latam FX falls as Trump-return chances boost dollar
Updated at 10:40 a.m. ET/ 1440 GMT
Elections in Uruguay this week
Mexico's peso hits 20 per dollar intraday
Latam FX down 0.7%, stocks off 0.9%
By Shashwat Chauhan
Oct 21 (Reuters) -Most Latin American currencies eased on Monday as the dollar retained its strength on continued pricing of greater odds that former U.S. President Donald Trump could return to the White House next month.
Analysts attributed the dollar strength to the better odds of Trump reclaiming the White House in the Nov. 5 elections, since his proposed tariff and tax policies are seen as likely to keep U.S. interest rates high and undermine the currencies of trading partners. FRX/
StoneX analysts note "that the plan could lead to an inflationary impact, which might limit the Fed's ability to lower interest rates to neutralize the impact. As a result, investors are expected to maintain gradual rate cut expectations".
Key trading partner Mexico's peso MXN= depreciated 0.7% to 19.99 per dollar, briefly breaching the psychologically important level of 20 intraday, an instance that happened for the second time in less than a week.
Brazil's real BRL= recovered from 11-month lows hit earlier in the session, last down 0.2%.
Brazil's central bank chief Roberto Campos Neto highlighted a "huge" de-anchoring of inflation expectations in the country, adding that it is "very important" to bring inflation back to target, and that policymakers are committed to doing so.
Chile's peso CLP= held firm at 953.63 per dollar, hovering near its lowest level since August, while Colombia's peso COP= and Peru's sol PEN= lost 0.4% and 0.2% respectively in light trading.
Most Latin American assets have remained subdued recently as investors bet on more stimulus measures from one of the largest commodities consumer China to aid its faltering property sector, with recent announcements failing to meet the expectations.
MSCI's index for Latin American currencies .MILA00000CUS lost 0.7%, while a gauge for stocks .MILA00000PUS shed 0.9%.
Most local bourses slipped, with Brazil's Bovespa .BVSP down 0.2%, and the Mexican benchmark .MXX down 0.5%.
Global finance chiefs will gather in Washington this week as part of the International Monetary Fund and World Bank annual meetings.
A summit of the BRICS group - Brazil, Russia, India, China and South Africa - which has expanded to include Egypt, Ethiopia, Iran and the United Arab Emirates, will be held in Russia from Oct. 22-24.
Uruguay will be going to the polls for the first-round vote on Oct. 27, with center-left presidential candidate Yamandu Orsi currently the frontrunner.
HIGHLIGHTS
** Mexican economy up 0.5% y/y in September, preliminary estimate shows
** Cuba grid collapses again raising doubts about a quick fix
** Latin America braces for US election impact on trade, tariffs
Key Latin American stock indexes and currencies:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1147.52 | -0.66 |
MSCI LatAm .MILA00000PUS | 2170.33 | -0.87 |
Brazil Bovespa .BVSP | 130300.41 | -0.15 |
Mexico IPC .MXX | 52763.5 | -0.5 |
Chile IPSA .SPIPSA | 6632.83 | -0.16 |
Argentina Merval .MERV | 1823181.2 | -0.008 |
Colombia COLCAP .COLCAP | 1361.58 | -0.04 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7055 | -0.23 |
Mexico peso MXN= | 19.9936 | -0.73 |
Chile peso CLP= | 953.63 | -0.02 |
Colombia peso COP= | 4283.3 | -0.42 |
Peru sol PEN= | 3.7558 | -0.15 |
Argentina peso (interbank) ARS=RASL | 983 | -0.20 |
Argentina peso (parallel) ARSB= | 1205 | 1.66 |
Reporting by Shashwat Chauhan in Bengaluru, editing by Ed Osmond
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
