EMERGING MARKETS-Strong dollar pressures Latam FX, Brazil stocks lower

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Nov 9 (Reuters) – Latin American currencies weakened on Friday, in line with emerging market peers elsewhere, as the dollar strengthened after the U.S. Federal Reserve stayed on its tightening course and looked set to raise interest rates in December. The Mexican peso fell 0.6 percent to a more than one week low, while Brazil’s real was steady in volatile trade. The steady move higher in the official rate of return for holding U.S. dollars has sucked money out of high-yielding bets in the developing world this year, prompting currency sell-offs and crises in Argentina, Turkey and India among others. The MSCI index of Latin American currencies was 0.5 percent lower, pacing the broader emerging market index’s move. The peso hit its lowest in more than a week, extending falls from the previous session. Mexico’s currency as well as stocks fell on Thursday after the latest policy proposal by the incoming government – to regulate commissions charged by commercial banks – further soured investor confidence in President-elect Andres Manuel Lopez Obrador’s administration. Brazil’s real see-sawed, while shares fell to their lowest in a week-and-half, following a decline in global equities and as U.S. stock futures pointed to lower open on Wall Street. Energy and material stocks led the fall in Brazil’s benchmark stock index.

Key Latin American stock indexes and currencies at 1257 GMT

Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 978.53 -1.51 -14.24 MSCI LatAm 2636.33 -0.25 -6.55 Brazil Bovespa 85521.73 -0.11 11.94 Mexico IPC – – – Chile IPSA 5217.24 -0.2 -0.20 Argentina MerVal – – – Colombia IGBC – – – Currencies daily % YTD % change change


Brazil real 3.7565 0.08 -11.8 Mexico peso 20.3293 -0.66 -3.10 Chile peso 680.4 -0.46 -9.66 Colombia peso – – – Peru sol 3.364 0.00 -3.78 Argentina peso (interbank) – – –

(Reporting by Susan Mathew in Bengaluru Editing by Frances Kerry)