Reuters: US Dollar Report: EMERGING MARKETS-Latam FX weighed down by global economy fears

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EMERGING MARKETS-Latam FX weighed down by global economy fears Mar 1st 2013, 16:32 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Fri Mar 1, 2013 11:32am EST * US spending cuts, European, Chinese PMI data weigh on markets * Brazil economy grows 0.9 pct in 2012, roughly in line with forecasts * Brazil real drops 0.2 pct, Mexico peso little changed RIO DE JANEIRO, March 1 (Reuters) - Latin American currencies weakened on Friday as concerns about the global economy increased after a series of business surveys in Europe and China painted a difficult economic outlook, which will be further challenged by automatic spending cuts in the United States. In Brazil, data showing the economy grew only 0.9 percent last year added to the lackluster market sentiment, although the performance was roughly in line with forecasts, showing a welcome albeit modest pick up in investment. "The market reaction to the poor manufacturing purchasing managers surveys is the main driver today, boosting the dollar," currency strategists with Brown Brothers Harriman wrote in a research note. The Brazilian real weakened as much as 0.6 percent but trimmed losses later as key Wall Street indexes entered positive territory following encouraging U.S. manufacturing data. The currency of Mexico, whose economy heavily depends on the U.S. consumption market, erased early losses to trade little changed at 12.7860 per dollar. Other Latin American currencies remained in the red, however. The Chilean peso and the Colombian peso each posted losses of about 0.2 percent. Investors started the month on a cautious footing as business surveys showed Asian factories slowed while European output fell. The data came at a moment when markets fret over Italy's political instability and a over a series of spending cuts that are coming into effect in the United States, potentially hurting the global economy. Latin American FX prices at 1612 GMT: Currencies daily % YTD % change change Latest Brazil real 1.9815 -0.21 2.95 Mexico peso 12.7860 -0.01 0.61 Chile peso 473.7000 -0.21 1.06 Colombia peso 1815.7500 -0.16 -2.74 Peru sol 2.5950 -0.23 -1.70 Argentina peso 5.0450 0.05 -2.63 Argentina peso 7.8200 0.26 -13.30 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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