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Mexico inflation slows in early Feb
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Banxico meeting minutes awaited
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Brazil Federal tax revenue grows in Jan
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Turkey central bank cuts interest rates
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Latam FX up 0.7%, stocks up 1.4%
By Amruta Khandekar Feb 23 (Reuters) - Latin American currencies rose against the U.S. dollar on Thursday, with Colombia's peso leading gains on an uptick in oil prices but Mexico's peso lagged ahead of minutes from the central bank's recent meeting. MSCI's index for Latin American currencies was 0.7% higher by 1443 GMT, outperforming broader emerging market currencies which edged up 0.2%.
Colombia's peso jumped 1%, extending gains to a second straight day as crude prices firmed. Mexico's peso was flat although the country is also a leading oil exporter, with minutes from Banxico's February meeting due later in the day set to be scrutinized for more clues on the central bank's monetary tightening plans.
Data released earlier showed inflation in Latam's second
largest economy decelerated more than forecast by analysts in
early February.
"There has been a repricing in terms of when and how
aggressively central banks in the (Latam) region may start the
easing cycle but in terms of continuing the hiking cycle, we
only have Banxico that has surprised the market to the upside,"
said Luis Hurtado, director of Latam FX at CIBC Capital Markets.
"The market is now pricing in around 75 to 100 basis points
left in the tightening cycle. We are not expecting Banxico to
increase rates that aggressively."
The Brazilian real jumped nearly 1%. The country's
federal tax revenue grew 1.14% in January compared to the same
month in the previous year, according to official figures
released on Thursday.
Chile's peso eased 0.3% while the Peruvian sol edged up 0.1% against the dollar.
Emerging market stocks rose 0.7% as investors
looked past minutes from the U.S. Federal Reserve's latest
meeting which signaled more rate hikes going ahead.
Latin American stocks were up 1.4%, with
Brazil's Bovespa 1.1% higher on a boost from energy and
financial stocks as investors returned from the Carnival
holidays.
Elsewhere in emerging markets, Turkey's central bank cut its
main interest rate to 8.5% from 9% on Thursday, moving to
cushion the economic impact of a devastating earthquake that
killed more than 43,000 people in country's south.
Key Latin American stock indexes and currencies at 1443 GMT:
Stock indexes Latest Daily % change
MSCI Emerging Markets 989.11 0.72 MSCI LatAm 2258.89 1.4 Brazil Bovespa 108376.44 1.14 Mexico IPC 0.00 0 Chile IPSA 5301.44 0.82 Argentina MerVal 247048.42 0.952 Colombia COLCAP 1191.99 0.37 Currencies Latest Daily % change
Brazil real 5.1223 0.93 Mexico peso 18.3550 -0.05 Chile peso 800.4 -0.26 Colombia peso 4842.69 1.05
Peru sol 3.7887 0.10 Argentina peso 195.3300 -0.19
(interbank) Argentina peso 373 1.07
(parallel) (Reporting by Amruta Khandekar; Editing by Kirsten Donovan)
