EMERGING MARKETS-Latam FX up against steady dollar; Upbeat economic data lifts Mexican peso

 (Updates prices)
    By Shreyashi Sanyal and Susan Mathew
    Aug 11 (Reuters) - Mexico's peso rose on Tuesday after data
showed industrial output rose in June in a sign of recovery
following the coronavirus lockdown, while other Latin American
currencies strengthened as the dollar held steady. 
    The peso gained 0.3% as a rebound in manufacturing
and construction saw Mexican industrial output rise 17.9% in
June from May.     
    But, "while production appears to have strengthened in July,
further gains will probably be more muted," warned Capital
Economics in a client note. 
    Mexico's coronavirus death toll passed 53,000 on Monday as
the government struggles to balance the need to curb the
pandemic with re-opening Mexico's battered economy. Early in
June, the country's Deputy Health Minister had said that a toll
of 60,000 would be a "very catastrophic scenario." 
    Brazil's real firmed as the dollar started to lose
momentum as signs of an improving global market outlook saw
investors betting on riskier currencies.
    Minutes from Brazil's latest central bank meeting showed
interest rates are close to as low as they can go without
destabilizing financial markets, meaning any further reductions
will likely be gradual and spaced out over time. 
    In Chile, after two days of losses that pushed its currency
 to one-month lows, the peso bounced 1.5% on Tuesday. 
    Among shares, major regional stocks indexes were mixed,
tracking choppy session on Wall Street.
    Mexican shares jumped 1% to scale two month highs.
The index extended gains to a fifth straight session amid
expectations of a 50 basis points cut in Mexico's key interest
rate on Wednesday. 
    Brazil shares slipped on a materials drag. Lender
Banco BTG Pactual slipped slightly as its
second-quarter recurring net income fell 4.1% on higher
operating expenses.
    In Argentina, Economy Minister Martin Guzman said a new
financing program with the International Monetary Fund is not
likely until the beginning of next year.

    The Peruvian sol traded flat. Unrest in the country
grew, causing mining and oil production disruptions, amid demand
for more economic aid and healthcare support during the pandemic
as a second wave of COVID-19 infections hits the
    Latin American stock indexes and currencies at 1941 GMT:
  Stock indexes           Latest   Daily %
 MSCI Emerging Markets    1091.80     0.49
 MSCI LatAm               2013.15    -0.48
 Brazil Bovespa         102369.36    -1.04
 Mexico IPC              38666.75     0.98
 Chile IPSA               4009.52     0.64
 Argentina MerVal        51092.41   -2.086
 Colombia COLCAP          1140.24    -0.29
      Currencies          Latest   Daily %
 Brazil real               5.4107     0.99
 Mexico peso              22.4200     0.12
 Chile peso                 792.5     1.27
 Colombia peso            3734.27     0.84
 Peru sol                  3.5597     0.00
 Argentina peso           72.9900    -0.05
 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Grant
McCool and Nick Zieminski)

Source: Read Full Article