*
Brazil govt launches measures to boost consumer, capital
credit
*
Salvadoran spreads tighten on IMF deal bets, bonds
distressed
*
Chilean central bank set to release minutes from April
meeting
(Updates prices, adds comments)
By Bansari Mayur Kamdar and Shreyashi Sanyal
April 20 (Reuters) - Brazil's real snapped a three-day
losing streak on Thursday on optimism about the government's
efforts to boost consumer and capital market credit, with most
other Latin American currencies gaining against a weakening
dollar.
The real added 0.3% against the greenback after Brazil's leftist government unveiled a package of 13 measures to ease consumer access to credit and reduce associated costs in the capital and insurance markets, in a move aimed at boosting investment and revitalizing a slowing economy. "One big challenge that the new administration has for the future is a low level of expectations that Brazil has in terms of growth," said Alejandro Cuadrado, global head of FX strategy at BBVA. "I don't think that economists are going to go back to the drawing board and lift their numbers dramatically because of what has been announced, it's an attempt at improving conditions partially but a lot is going to be determined by the global trend."
Mexico's peso gained 0.3% against a softer dollar. Data showed Mexican retail sales fell 0.3% in February from January compared to estimates of a 0.2% rise.
The U.S. dollar index drifted 0.1% lower amid caution in global markets ahead of a barrage of central bank meetings and U.S. earnings in the coming weeks. The Colombian peso climbed 0.1% against the dollar. Currencies of copper producers Chile and Peru added 0.2% and 0.3%, respectively.
Minutes from Chile's central bank meeting earlier this
month are due later in the day, expected to confirm its hawkish
tone and no room to cut interest rates in its next meeting in
May.
The Argentine peso widely used in parallel markets sank to a record low of 438 against the U.S. dollar as concerns grew about the country's economy.
Argentina's central bank hiked its interest rate by 300 basis points to 81% after inflation overshot expectations in March.
Elsewhere in South America, Salvadoran bond spreads narrowed on Wednesday to their tightest since December 2021 in a rally triggered by hopes that a key new adviser to the finance ministry would help secure a debt deal with the International Monetary Fund (IMF). Cuban lawmakers re-elected Miguel Diaz-Canel as president for a second term.
Stocks in Latin America were flat, with Brazil's Bovespa index up 0.3%. Shares of Braskem fell 2.4% after a court ordered blocking around 1.1 billion reais ($217.47 million) from the petrochemical company's accounts.
Key Latin American stock indexes and currencies at 1958 GMT;
Stock indexes Latest Daily
%
change
MSCI Emerging Markets 989.37 -0.1
MSCI LatAm 2237.52 -0.03
Brazil Bovespa 104248.1 0.32
9
Mexico IPC 54295.01 -0.02
Chile IPSA 5393.63 -0.55
Argentina MerVal 282120.7 2.438
5
Colombia COLCAP 1238.93 -0.72
Currencies Latest Daily
%
change
Brazil real 5.0590 0.52
Mexico peso 18.0009 0.18
Chile peso 791.7 0.29
Colombia peso 4531 0.10
Peru sol 3.7509 0.33
Argentina peso (interbank) 217.9900 -0.23 Argentina peso (parallel) 427 -0.94
($1 = 5.0582 reais)
(Reporting by Bansari Mayur Kamdar, Shreyashi Sanyal and
Shashwat Chauhan in Bengaluru
Editing by Nick Zieminski and Josie Kao)
