Reuters: US Dollar Report: EMERGING MARKETS-Brazil real gains as cenbank extends swap rollover

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EMERGING MARKETS-Brazil real gains as cenbank extends swap rollover Oct 25th 2013, 12:56 Tweet Share this Email Print Reprints Related Topics Currencies » Bonds News » Bonds » Markets » Fri Oct 25, 2013 8:56am EDT RIO DE JANEIRO, Oct 25 (Reuters) - The Brazilian real rose more than half a percentage point early on Friday after the central bank announced it will continue to roll over currency swaps that expire early next month, providing additional support to the exchange rate. The Mexican peso was little changed, however, as investors awaited a key monetary policy decision at 1400 GMT. During the past few days, Latin American currencies in general have been supported by bets that the U.S. Federal Reserve will delay the unwinding of its bond-buying program, which for years has supported investors' appetite for emerging market assets. * Brazil's real rose 0.9 percent to 2.1820 per dollar after the central bank last announced last night that it will continue to roll over currency swaps maturing on Nov. 1 with three auctions next Monday, Tuesday and Wednesday. Such swaps are derivatives that provide investors with protection against a depreciation of the real. * The announcement surprised many investors who thought Brazilian policymakers had already concluded the roll-over of the $8.9 billion worth of currency swaps that expire early next month. Bets on a partial roll-over increased as the real recently traded at four-month highs. * Brazil's central bank has so far rolled over nearly $3 billion of the swaps maturing in November. It has still not announced how many swaps it will offer during next week's auctions. * The Mexican peso was little changed at 12.98 per dollar as investors have mostly priced in a 25-basis-point interest rate cut that should take Mexico's benchmark rate to 3.5 percent. * The Chilean peso lost 0.4 percent, however, tracking a half percentage point decline in the price of copper , the country's main export product. Latin America FX prices at 1245 GMT: Currencies daily % YTD % change change Latest Brazil real 2.1820 0.85 -6.51 Mexico peso 12.9635 0.09 -0.77 Chile peso 505.1000 -0.32 -5.23 Peru sol 2.7610 0.14 -7.61 Argentina peso 5.8675 -0.04 -16.28 Argentina peso 10.0600 0.20 -32.60 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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