Reuters: US Dollar Report: RPT-EMERGING MARKETS-Latam FX little changed on weak data, stimulus hopes

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RPT-EMERGING MARKETS-Latam FX little changed on weak data, stimulus hopes Sep 3rd 2012, 19:36 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Mon Sep 3, 2012 3:36pm EDT * Trading volumes fall due to U.S. Labor Day holiday * Weak Chinese data weighs on commodity exporters * Stimulus expectations support Latam currencies By Natalia Cacioli and Lorena Segura SAO PAULO/MEXICO CITY, Sept 3 (Reuters) - Latin American currencies were little changed on Monday after weak Chinese manufacturing data dimmed the outlook for commodity exporters, while hopes of further U.S. monetary stimulus supported prospects for dollar inflows to emerging economies. The Mexican peso was slightly stronger at 13.1820 per dollar as trading volume slacked off due to the Labor Day holiday in the United States. "There's nothing going on today. The peso will likely trade at 13.1821 from here to the end of the session," said Javier Benavides, a trader at currency brokerage Base in Monterrey, Mexico. The Brazilian real dipped 0.02 percent to 2.0305 per greenback after an official reading on China's manufacturing sector fell below 50, the level separating growth from contraction, for the first time since November. China is Brazil's main trading partner. A similar survey from Markit, sponsored by HSBC, showed Chinese factory activity shrinking at its fastest pace since March 2009. Poor manufacturing data was also seen in the euro zone, where activity contracted for the 13th month. The numbers added to expectations the European Central Bank will soon provide details about a much-anticipated bond-buying program to lower borrowing costs for countries such as Spain and Italy. Investors expect details to be released at the end of the ECB's monetary policy meeting on Thursday. Benavides said the ECB's announcement could be positive but it unlikely will help the peso appreciate. A reading on Friday in line or below expectations for the U.S. labor market could weaken the peso, he said. "We are still awaiting new stimulus measures; the focus now is on the ECB meeting," said Mauricio Nakahodo, an economic research consultant with Tokyo-Mitsubishi bank in Sao Paulo. In Brazil, Nakahodo added, the real is expected to remain trading within a narrow range of 2.0 to 2.1 per dollar, a level "that stimulates exporters but does not bring inflationary pressures." Latin American FX prices at 1920 GMT: Brazil real 2.0305 -0.02 -7.98 Mexico peso 13.1854 0.11 5.95 Argentina peso* 6.3200 0.79 -25.16 Chile peso 480.0000 0.08 8.19 Colombia peso Holiday Market Closed Peru sol 2.6070 0.12 3.45 * 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.

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