Reuters: US Dollar Report: EMERGING MARKETS-Mexico, Brazil currencies drop on Fed fears

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EMERGING MARKETS-Mexico, Brazil currencies drop on Fed fears Jul 25th 2013, 16:24 Tweet Share this Email Print Related Topics Currencies » Bonds News » Bonds » Markets » Thu Jul 25, 2013 12:24pm EDT RIO DE JANEIRO, July 25 (Reuters) - The currencies of Mexico and Brazil weakened on Thursday after data suggested U.S. business spending plans were on the rise, supporting the case for an early withdrawal of the Federal Reserve's stimulus measures. Investors' appetite for Latin American currencies has been fluctuating according to the expected timing of an eventual closure to the Fed's bond-buying program, which for years has provided a steady source of dollars seeking higher returns in emerging markets. The U.S. Commerce Department on Thursday reported that orders of non-defense capital goods excluding aircraft, a proxy for business spending plans, increased 0.7 percent in June from May, more than the 0.5 percent expected by economists. * The Mexican peso lost 0.4 percent to 12.6580 per dollar after weakening to as much 12.6710 earlier, just a tad short of crossing its 200-day simple moving average. * The Brazilian real lost 0.5 percent after seesawing between positive and negative territories during most of the morning, briefly supported by exporters selling dollars and the central bank auctioning traditional currency swaps, an action that is equivalent to an injection of greenbacks in the futures market. * Brazil's central bank sold all of the 20,000 currency swaps it offered at an auction on Thursday and immediately offered to sell another 20,000 contracts on Friday, as part of its efforts to roll over expiring maturities. * The Chilean peso erased early losses to gain 0.2 percent as domestic mining companies stepped into the market to sell dollars. Latin American FX prices at 1633 GMT: Currencies daily % YTD % change change Latest Brazil real 2.2597 -0.47 -9.72 Mexico peso 12.6580 -0.38 1.63 Chile peso 505.1000 0.18 -5.23 Colombia peso 1886.6000 0.28 -6.39 Peru sol 2.7850 0.07 -8.40 Argentina peso 5.4700 -0.09 -10.19 Argentina peso 8.6400 0.12 -21.53 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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