Reuters: US Dollar Report: EMERGING MARKETS-Latam FX mixed; Chile peso drops on intervention fears

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

EMERGING MARKETS-Latam FX mixed; Chile peso drops on intervention fears Sep 28th 2012, 18:54 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Fri Sep 28, 2012 2:54pm EDT * Chile cenbank president doesn't rule out intervention * Concerns over Spain ratings, banks weigh on Latam FX * Mexican peso falls 0.2 pct, Brazil real up 0.2 pct RIO DE JANEIRO, Sept 28 (Reuters) - Chile's peso dropped on Friday after the central bank warned it could intervene to curb currency gains, while concerns about Spain's banks and credit ratings weighed on Latin American foreign exchange markets in general. The Chilean peso lost 0.8 percent to change hands at 474.60 per U.S. dollar after central bank chief Rodrigo Vergara said policymakers may intervene during "exceptional periods" in which the exchange rate is significantly out of line with fundamentals. The peso has gained more than 9 percent so far this year, which makes it the second strongest performer among the 152 currencies tracked by Reuters. The Mexican peso lost a modest 0.2 percent to trade at 12.8577 per dollar as concerns about Spain made investors cautious about taking risks in emerging markets. A stress test on Spanish banks showed the institutions need a total of 59.3 billion euros in extra capital, in line with market expectations, but concerns about a possible downgrade of Spain's sovereign ratings by Moody's Investors Service still weighed on investor sentiment. The Brazilian real decoupled from the rest of the market, rising 0.2 percent to 2.0260 per dollar, as investors tried to influence the currency's closing rate at the end of the month. "Markets are looking overseas, especially to the United States and Spain," said Ovidio Soares, a currency trader at Interbolsa do Brasil, a brokerage in Sao Paulo. "But today the key issue is (the fight) between investors who are short or long in dollars." Latin American FX prices at 1840 GMT: Currencies Daily YTD pct pct change Latest change Brazil real 2.0260 0.25 -7.77 Mexico peso 12.8577 -0.24 8.65 Argentina peso* 6.2800 0.32 -24.68 Chile peso 474.6000 -0.76 9.42 Colombia peso 1,800.3000 -0.10 7.67 Peru sol 2.5980 -0.08 3.81 * Argentine peso's rate between brokerages Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions