Mexican peso leads Latam FX lower as dollar strengthens
Brazil's Petrobras jumps after MS upgrade
Mexico's ruling bloc confirmed supermajority in lower house
Victor Rodriguez tapped as next Pemex CEO
Latam stocks up 0.3%, FX down 0.3%
Updated at 2010 GMT
By Shashwat Chauhan and Lisa Pauline Mattackal
Aug 26 (Reuters) -Most Latin American currencies slipped on Monday as the dollar regained some footing after hitting multi-month lows last week, with Mexico's peso leading declines after ruling party Morena secured a supermajority in parliament.
The U.S. dollar recovered ground after slipping in the previous session after Federal Reserve Chair Jerome Powell on Friday said "the time has come" to lower interest rates.
The dollar index gained 0.2%, pressuring Latin American currencies. MSCI's index tracking regional currencies against the dollar .MILA00000CUS lost 0.3%.
Mexico's peso MXN=D3 slipped 1.8% to 19.428 per dollar after a rise of more than 2% on Friday, as investors remained wary of local political developments.
Mexico's electoral authority on Friday confirmed that ruling party Morena and its allies will hold a two-thirds supermajority in the lower house but fall just short of that level in the Senate when the new legislative term begins in September.
The Morena party intends to approve the first part of a series of constitutional changes proposed by outgoing President Andres Manuel Lopez Obrador including a reform of the judiciary that has rattled markets.
The dollar also caught a bid as investors sought safer assets as worries rose around escalating conflict in the Middle East, after militant group Hezbollah and Israel exchanged missiles.
"There appears to be a mild risk-off undertone to trading today as investors react to the heightened tensions around Israel (and) Lebanon over the weekend," said Shaun Osborne, chief FX strategist at Scotiabank.
However, he noted that "USD gains are mild and do not alter the trajectory of the dollar index, even from a short-term point of view."
Indeed, the LatAm currency index is on track for its best month since December, despite a steep sell-off in risk assets at the start of the month.
Copper producer Chile's peso CLP= ticked 0.3% higher as prices of the red metal rose, supported by a rebound in demand in China and on hopes of a U.S. rate cut in September. MET/L
Brazil's real BRL= and Colombia's peso COP= were little changed.
Brazil posted a larger-than-expected current account deficit in July, driven by an increase in the services account shortfall.
Among equities, Brazil's Bovespa .BVSP added 0.9%, boosted by a jump of over 7% jump in Petrobras PETR4.SA after brokerage Morgan Stanley upgraded its rating.
The state-owned oil firm was on track for its best day in nearly two years.
MSCI's index for regional stocks .MILA00000PUS rose 0.3%, and is also on track for monthly gains.
Elsewhere, Mexico's incoming president tapped academic Victor Rodriguez to be the next top executive of oil giant Pemex.
HIGHLIGHTS
** S&P downgrades Kenya's rating to 'B-' on weaker fiscal and debt trajectory
** Brazil's central bank needs to be more cautious due to strong economy, director says
** Nigerian economy grows over 3% in Q2 as oil output rises
Key Latin American stock indexes and currencies:
MSCI Emerging Markets .MSCIEF | 1104.28 | 0.33 |
MSCI LatAm .MILA00000PUS | 2299.15 | 0.27 |
Brazil Bovespa .BVSP | 136888.71 | 0.94 |
Mexico IPC .MXX | 53189.08 | -0.56 |
Chile IPSA .SPIPSA | 6442.64 | -0.32 |
Argentina Merval .MERV | 1593002.53 | -0.869 |
Colombia COLCAP .COLCAP | 1343.93 | 0.97 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.5005 | -0.26 |
Mexico peso MXN= | 19.428 | -1.75 |
Chile peso CLP= | 905.36 | 0.29 |
Colombia peso COP= | 4022.84 | -0.03 |
Peru sol PEN= | 3.7292 | -0.12 |
Argentina peso (interbank) ARS=RASL | 949 | -0.263435195 |
Argentina peso (parallel) ARSB= | 1330 | 1.503759398 |
Major EM currencies so far this year https://tmsnrt.rs/3AEWxC6
Reporting by Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Sharon Singleton and Matthew Lewis
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
