Mexican peso leads Latam FX lower as rate worries weigh

Reuters

Mexican peso leads Latam FX lower as rate worries weigh

2024 7월 30, 오후 7:55 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EMERGING MARKETS-Mexican peso leads Latam FX lower as rate worries weigh</title></head><body>

Mexico GDP weakens, peso falls to near seven-week low

Commodity currencies slip as China demand worries weigh

Venezuela in focus as anti-Maduro protests spread

Chile rate decision awaited later in the day

Updated at 3:30 p.m. ET/1930 GMT

By Lisa Pauline Mattackal and Shashwat Chauhan

July 30 (Reuters) -Mexico's peso led broader declines in Latin American currencies after weaker-than-expected economic data, while worries about commodity demand in China and caution ahead of a bevy of key central bank decisions weighed on sentiment.

Mexico's economy grew 0.2% in the second quarter, versusanalysts expectations ofa 0.4% rise.

Slowing growth in Latin America's largest economy fueled expectations for the central bank to cut interest rates at its August meeting, weighing on Mexico's peso MXN= which fell 0.6% to 18.746 perdollar, hitting itslowest in nearly seven weeks.

"The performance of the economy in H1 would be supportive of an eventual resumption of policy normalization once risk management considerations can be sent again to the back burner and the canonical inflation activity balance can be given preeminence again in policy deliberations," Deutsche Bank analysts wrote in a note.

Worries about commodity demand from China, the world's second-largest economy, also weighed on producers in Latin America, after there were no specific new stimulus efforts announced at the country's Politburo meeting.

Oil slumped to its lowest since June, while major metals including iron ore and copper also lost ground. MKTS/GLOBO/R

Trading was also cautious ahead of the U.S. Federal Reserve's policy decision on Wednesday, with investors watching for a dovish tone from policymakers to gauge whether market bets on a September rate cut are on the right track.

Chile's peso <CLP=> shrugged off initial losses and was up 0.1%ahead of the Banco Central de Chile's policy decision later in the day, where the bank is expected to ease its main lending rate by 25-basis-points.

Rate decisions from both Colombia and Brazil are also on deck onWednesday. Colombia is expected to ease policy from 11.25% to 10.75%, while Brazilian policymakers are expected to hold borrowing costs again at 10.5%.

Rate trajectories in the region highlight the challenges facing central banks in the region as they balance the need to boost economic growth with an uncertain global macroeconomic scenario and higher-for-longer rates in major developed economies such as the U.S.

The Colombian peso COP= lost 0.5%, while Brazil's real BRL= was down 0.1%.

MSCI's indexes tracking the region's stocks .MILA00000PUS was down 0.3%, withBrazil's Bovespa .BVSP down 0.6%, while Argentina's Merval .MERV slipped 4.4% to an over two-month low.

Commodity price declines dragged Brazil's Vale VALE3.SA and Petrobras PETR4.SA which lost 1.8% and 1%, respectively.

Venezuelan politics remained in focus, with protests spreading throughout the country after Nicolas Maduro was announced the winner of its presidential election despite the opposition claiming victory.

Venezuela's dollar-denominated bonds USP97475AN0=1M, USP97475AJ9=1M were broadly steady after sharp declineson Monday.

HIGHLIGHTS

** World Bank approves $1 billion in financing for Ethiopia

** Turks eye property investments abroad as domestic market loses appeal

** India markets regulator proposes slew of measures to curb options trading frenzy

Key Latin American stock indexes and currencies:

	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1072.20	-0.47
MSCI LatAm .MILA00000PUS	2172.67	-0.31
Brazil Bovespa .BVSP	126251.39	-0.55
Mexico IPC .MXX	52360.84	-0.3
Chile IPSA .SPIPSA	6472.98	-0.2
Argentina MerVal .MERV	1417202.78	-4.323
Colombia COLCAP .COLCAP	1333.49	-0.54

Currencies	Latest	Daily % change
Brazil real BRBY	5.6232	0.03
Mexico peso MXN=D2	18.7470	-0.64
Chile peso CLP=CL	954.2	-0.12
Colombia peso COP=	4080.32	-0.51
Peru sol PEN=PE	3.7229	-0.04
Argentina peso (interbank) ARS=RASL	932.0000	0.00
Argentina peso (parallel) ARSB=	1365	3.66

Caracas claw back https://reut.rs/46ng45C

Reporting by Lisa Mattackal and Shashwat Chauhan in Bengaluru; Editing by Marguerita Choy

</body></html>

Mexican peso leads Latam FX lower as rate worries weigh

관련 자산

최신 뉴스

Clorox Increases Quarterly Dividend To $1.22 Per Share

Live Nation misses quarterly profit estimates, shares fall

Rio Tinto reports largely flat first-half profit

Microsoft sinks, chipmakers climb as AI rally faces divide

Ferrovial's profit surges, beats forecast as highway builder bets on US

XM 실시간 채팅