Reuters: US Dollar Report: EMERGING MARKETS-Latam FX supported by hopes of longer U.S. stimulus

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EMERGING MARKETS-Latam FX supported by hopes of longer U.S. stimulus Nov 6th 2013, 19:36 Tweet Share this Email Print Reprints Related Topics Currencies » Bonds News » Bonds » Markets » Wed Nov 6, 2013 2:36pm EST RIO DE JANEIRO, Nov 6 (Reuters) - Latin American currencies were steady to stronger on Wednesday as hopes that U.S. stimulus could remain in place for longer were boosted by remarks from a Fed policymaker and research papers from the bank's top economists. The region's currencies had slumped on Tuesday, with the Brazilian real hitting a two-month low, as investors feared upcoming U.S. economic data would encourage the Fed to soon start winding down its massive bond-buying program, which for years has supported appetite for emerging-market assets. On Wednesday, however, investors seemed more focused on comments made by John Williams, president of the San Francisco Federal Reserve Bank, who said late on Tuesday the Fed should wait for stronger evidence of economic momentum before pulling back on its stimulus. Adding to speculation about a more dovish Fed, two of its top staff economists made the case in new research papers for more aggressive action by the U.S. central bank to drive down unemployment. * The Brazilian real gained 0.3 percent after slumping 2 percent on Tuesday, but local investors remained jittery about a recent deterioration in the country's fiscal performance that had caused the real to suffer the most among Latin American currencies in the previous session. * Also contributing to the real's recovery was speculation that the central bank could step up its market intervention by offering to roll over currency swaps that mature in the beginning of December. * The Mexican peso was little changed at 13.1540 per dollar after dropping more than 1 percent on Tuesday to its weakest level since Oct. 10. * The Mexican currency is set to easily outperform the real over the next 12 months as investors remain optimistic about prospects for reforms in the long term, a Reuters poll showed. Latin America FX prices at 2020 GMT: Currencies daily % YTD % change change Latest Brazil real 2.2820 0.29 -10.60 Mexico peso 13.1540 0.05 -2.20 Chile peso 515.1000 0.12 -7.07 Colombia peso 1918.3000 0.17 -7.94 Peru sol 2.7890 0.11 -8.53 Argentina peso 5.9525 -0.17 -17.47 Argentina peso 9.7900 0.92 -30.75 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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