Possible Trump second term, weak commodity prices weigh on Latam FX
Brazil's economic activity up in May despite flood tragedy
Mexico's Mejia says rate cuts should be gradual
Peru cenbank sees economy growing 4% in second quarter
Argentina to sell dollars on parallel market
Updated at 3:35 p.m. ET/1935 GMT
By Johann M Cherian
July 15 (Reuters) -Mexico's peso led declines across Latin American currencies on Monday, as investor expectations on the likelihood of a second term for former U.S. President Donald Trump and declines in commodity prices fanned the risk-off mood.
The currency of the second-largest economy in the region, Mexico MXN= depreciated close to 1%, as Trump cementshis hold on his Republican Party at its 2024 convention this week, having survived an assassination attempt.
The former U.S. president's policies on trade protectionism and against illegal immigrationare seen as negative for emerging markets.
"The most exposed country in terms of risks relative to the current condition is Mexico, given issues on trade where Mexico has overtaken China in terms of bilateral trade balance and the issue of immigration on southern border as well as security," said Olga Yangol, head of EM research & strategy at Credit Agricole.
Elsewhere, Banxico Deputy Governor Omar Mejia's comments on gradual adjustments to the local benchmark interest rate did little to support the currency, as per a report.
Brazil's real BRL= slipped 0.3% to 5.44 per dollar. Economic activity in the region's largest economy increased by a seasonally adjusted 0.25% in May from the previous month, showing resilience despite severe flooding in the country's southernmost state during the period.
The world's largest copper exporter, Chile's peso CLP= weakened 0.4%, as prices of the red metal lost its shine after economic growth data from top consumer China weighed on demand outlook. MET/L
Oil exporter Colombia's COP= peso shed 0.4%, as crude prices slipped. O/R
Peru's sol PEN= inched up 0.2% in thin trades, after touching nearly two-month highs in the previous session. The local central bank said it expects second-quarter annualized Gross Domestic Product (GDP) growth to land around 4% and around 5% for the month of May, returning to growth after the economy fell into a technical recession last year.
Most South American currencies are down so far this year against the dollar as a combination of local interest rate cuts, firmer dollar as the Federal Reserve has held back from cutting rates and regional political jitters decreased the appeal for the traditionally risky assets.
On the equities front, MSCI's index tracking local bourses .MILA00000PUS slipped 0.1%, with Mexican stocks .MXX down about 1%.
Argentina's peso ARSB= strengthened more than 7% in parallel trade, while the MerVal stock index .MERV dropped over 11%. The Javier Milei-led government said the local central bank will start selling U.S. dollars in the country's parallel foreign exchange markets in an effort to combat inflation and freeze the country's money supply.
Key Latin American stock indexes and currencies:
Latest | Daily % change | |
MSCI Emerging Markets .MSCIEF | 1120.00 | -0.32 |
MSCI LatAm .MILA00000PUS | 2320.38 | -0.09 |
Brazil Bovespa .BVSP | 129373.35 | 0.37 |
Mexico IPC .MXX | 54376.92 | -1.05 |
Chile IPSA .SPIPSA | 6559.84 | 0.15 |
Argentina MerVal .MERV | 1524749.96 | -11.125 |
Colombia COLCAP .COLCAP | 1370.80 | -0.24 |
Currencies | Latest | Daily % change |
Brazil real BRBY | 5.4438 | -0.25 |
Mexico peso MXN=D2 | 17.7670 | -0.91 |
Chile peso CLP=CL | 908.9 | -0.39 |
Colombia peso COP= | 3943.81 | -0.42 |
Peru sol PEN=PE | 3.7068 | 0.16 |
Argentina peso (interbank) ARS=RASL | 922.0000 | -0.27 |
Argentina peso (parallel) ARSB= | 1395 | 7.53 |
Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; editing by David Evans and Alistair Bell
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
