Colombian peso dips after rate cut; Latam FX set for monthly falls
Colombian peso hits lowest level since June 2023
Brazil unemployment drops to second-lowest level on record
MSCI Latam stocks index off 0.7%, FX up 0.2%
Updated at 4:00 p.m. ET
By Johann M Cherian and Ankika Biswas
Oct 31 (Reuters) -Most currencies in Latin America lacked momentum on Thursday, and were ontrack for monthly losses, while Colombia's peso fell following a 50-basis-point interest rate cut by the country's central bank.
The Colombian peso COP= was down nearly 0.3% against the U.S. dollar =USD, hitting its lowest level since June 2023.
Colombia's central delivered a widely expected 50-bps rate cut at 9.75%, citing economic uncertainties from U.S. elections, while also revising its 2024 growth prediction upward and trimming its inflation forecast.
MSCI's index tracking Latam currencies .MILA00000CUS was up 0.2%, while the stocks gauge .MILA00000PUS was down 0.7%.
Both the indexes were on track for their worst monthly performance since June, hurt primarily by risk aversion ahead of a tight U.S. presidential race next week.
Some investors have increasingly bet that Republican candidate Donald Trump will win, helping to lift the dollar and U.S. Treasury yields, although he is still neck and neck with Democratic Vice President Kamala Harris in several polls.
Analysts see Trump at loggerheads with most left-leaning governments in the region and his policies on trade, security and migration are consideredinflationary and unfriendly totrading partners.
"Markets continue to be in a mini regime of heightened volatility ahead of U.S. elections, with polling outcomes still very close to 50-50. The risk appetite remains low as the results can be binary, especially for some EM jurisdictions," Goldman Sachs analysts noted.
"We think that rates will continue to trade in a range to slightly higher."
Brazil's real BRL= dipped 0.3% against the greenback,on track for its fifth-straight day in the red.
The country's labor market is posting blockbuster numbers ahead of next week's rate decision, amid bets of a sped-up monetary tightening due to inflationary risks.
Data showed Brazil's jobless rate fell to 6.4% in the three months through September, below market expectations and marking the second-lowest unemployment level on record.
Brazilian lender Bradesco's BBDC4.SA shares fell nearly 4%, even after posting a slightly higher-than-expected third-quarter net income , dragging the country's main stock index .BVSP 0.6% down to a one-week low.
Mexico's peso MXN= climbed 0.6% against thedollar, firmingafter a four-day losing streak, but still hovering over 20-per-dollar mark.
Set for its fourth monthly decline in five, the peso has been the most sensitive to volatility in the run-upto U.S. elections. Analysts expect a Donald Trump victory toquickly weaken the peso to more than 21-per-dollar.
Amid an ongoing judicial overhaul, the country's lower house of Congress approved a measure that makes changes to the constitution "unchallengeable."
Key Latin American stock indexes and currencies:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1120.83 | -0.5 |
MSCI LatAm .MILA00000PUS | 2125.11 | -0.65 |
Brazil Bovespa .BVSP | 129865.24 | -0.59 |
Mexico IPC .MXX | 50635.33 | -0.48 |
Chile IPSA .SPIPSA | 6550.32 | NULL |
Argentina Merval .MERV | 1855851.06 | 0.997 |
Colombia COLCAP .COLCAP | 1360.63 | 0.31 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.778 | -0.26 |
Mexico peso MXN= | 20.0142 | 0.64 |
Chile peso CLP= | 961.12 | 0.06 |
Colombia peso COP= | 4422.6 | -0.27 |
Peru sol PEN= | 3.773 | -0.21 |
Argentina peso (interbank) ARS=RASL | 990.5 | -0.15 |
Argentina peso (parallel) ARSB= | 1170 | 0.85 |
LatAm FX relative performance since Mexican election https://reut.rs/4f9VF7N
Reporting by Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Richard Chang and Marguerita Choy
Actifs liés
Dernières actualités
Avertissement : Les entités de XM Group proposent à notre plateforme de trading en ligne un service d'exécution uniquement, autorisant une personne à consulter et/ou à utiliser le contenu disponible sur ou via le site internet, qui n'a pas pour but de modifier ou d'élargir cette situation. De tels accès et utilisation sont toujours soumis aux : (i) Conditions générales ; (ii) Avertissements sur les risques et (iii) Avertissement complet. Un tel contenu n'est par conséquent fourni que pour information générale. En particulier, sachez que les contenus de notre plateforme de trading en ligne ne sont ni une sollicitation ni une offre de participation à toute transaction sur les marchés financiers. Le trading sur les marchés financiers implique un niveau significatif de risques pour votre capital.
Tout le matériel publié dans notre Centre de trading en ligne est destiné à des fins de formation / d'information uniquement et ne contient pas – et ne doit pas être considéré comme contenant – des conseils et recommandations en matière de finance, de fiscalité des investissements ou de trading, ou un enregistrement de nos prix de trading ou une offre, une sollicitation, une transaction à propos de tout instrument financier ou bien des promotions financières non sollicitées à votre égard.
Tout contenu tiers, de même que le contenu préparé par XM, tels que les opinions, actualités, études, analyses, prix, autres informations ou liens vers des sites tiers contenus sur ce site internet sont fournis "tels quels", comme commentaires généraux sur le marché et ne constituent pas des conseils en investissement. Dans la mesure où tout contenu est considéré comme de la recherche en investissement, vous devez noter et accepter que le contenu n'a pas été conçu ni préparé conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et, en tant que tel, il serait considéré comme une communication marketing selon les lois et réglementations applicables. Veuillez vous assurer que vous avez lu et compris notre Avis sur la recherche en investissement non indépendante et notre avertissement sur les risques concernant les informations susdites, qui peuvent consultés ici.