Mexican peso jumps as investors cheer Sheinbaum's cabinet picks
Mexican Peso hits two-week high
Latam stocks eye weekly losses
Peru's central bank raises 2024 GDP growth forecast
Updated at 3:23 p.m. ET/ 1923 GMT
By Sruthi Shankar
June 21 (Reuters) -The Mexican peso climbed to a two-week highagainst the dollar on Friday as investors cheered President-elect Claudia Sheinbaum's pick for the cabinet positions, while a gauge of Latin American stocks looked set for the first weekly rise in five.
The peso MXN=D3 firmed to 18.15 perdollar, touching its strongest level since June 7, but weaker than pre-election levels.
Other Latam currencies including the Brazilian real BRL= and the Colombian peso COP= also firmed on Friday but were headed for weekly losses.
Mexico's Sheinbaum on Thursday named six members of her incoming cabinet, including business-friendly Marcelo Ebrard as economy minister, putting him in charge of trade negotiations.
Ebrard will oversee the Mexican side of the2026 review of the United States-Mexico-Canada Agreement trade pact.
"These appointments were well-received by the markets and business community as they have the expertise and credentials for the job, in contrast with appointments in the AMLO administration," noted Ernesto Revilla, Latin America economist at Citi.
"While these appointments contrast with the more disruptive Constitutional reform agenda, they show that the Sheinbaum administration will be continually facing trade-offs between the institutional/social reform agenda promised by her in the campaign and a more pragmatic, business-friendly stance."
The Bank of Mexico's monetary policy decision is due next week, with several traders now expecting policymakers delay rate cuts until August.
Mexican shares .MXX shed0.6%.
In contrast, Brazil's main Bovespa stock index .BVSP rose nearly 0.9%. Sabesp SBSP3.SA advanced 2.8% after Sao Paulo state gave final approval to privatize the water utility firm, which can launch a share sale in coming days.
A broader gauge of Latin American stocks .MILA00000PUS rose 0.25%and was set for a near 1% gain on the week.
Meanwhile, Peru's central bankraised the Andean nation's economic growth forecast this for this year to 3.1%, from 3% earlier.
Argentina's markets were closed.
Key Latin American stock indexes and currencies:
Latest | Daily % change | |
MSCI Emerging Markets .MSCIEF | 1087.01 | -0.8 |
MSCI LatAm .MILA00000PUS | 2189.50 | 0.24 |
Brazil Bovespa .BVSP | 121491.06 | 0.87 |
Mexico IPC .MXX | 52980.75 | -0.66 |
Chile IPSA .SPIPSA | 6512.68 | -1.16 |
Argentina MerVal .MERV | - | - |
Colombia COLCAP .COLCAP | 1368.88 | -0.52 |
Currencies | Latest | Daily % change |
Brazil real BRBY | 5.4440 | 0.31 |
Mexico peso MXN=D2 | 18.1520 | 1.07 |
Chile peso CLP=CL | 940.2 | -1.02 |
Colombia peso COP= | 4146.32 | 0.44 |
Peru sol PEN=PE | 3.7924 | -0.03 |
Argentina peso (interbank) ARS=RASL | - | - |
Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru
Editing by Marguerita Choy
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