Emerging Markets – Chilean Peso and Peruvian Sol lead Latam FX lower

Written by Bansari Mayur Kamdar and Shriyashi Sanyal

January 13 (Reuters)The Chilean peso fell on Friday, tracking soft copper prices, wPeruvian HillSeoul fell in the wake of violent protestsAnd growth medium Hopes of smaller increases by the US Federal Reserve.

pesos clp = It fell 0.5% against the dollar as prices of the red metal, of which Chile is the largest producer, took a breather after a sharp rise this week.dead / lt

Latin American coins .MILA00000CUS acquired 2.8% So far this week it has been on track for its second week of gains, getting off to an optimistic start to January and 2023.

Perucentral bank raised the benchmark interest rate by 25 basis points to 7.75% on Thursday, as the country battled the highest rate of inflation in a quarter of a century.

“Although inflation has already shown signs of slowing, he was not convinced, and the central bank will strive to ensure that inflation returns to its target range,” said Mario Guerrero, deputy chief economist for Peru at Scotiabank.

Thousands of people took to the streets of Lima, the capital of Peru Peaceful protest Against the new government and the president, after weeks of bloody clashes that erupted after the overthrow of former President Pedro Castillo left at least 42 people dead.

“In the near term, the protests may put more upward pressure on inflation,” William Jackson, chief emerging markets economist at Capital Economics, wrote in a note.

“Peru has been one of the fastest growing economies in the region over the past few decades, but it’s hard to see that continuing.”

The local currency has lagged behind its peers so far this year, up just 0.3%, compared to other Latin American currencies that have gained nearly 3% each.

Peru Economie It likely grew just under 2.9% last year, a senior central bank official said, suggesting the South American country’s economy expanded less than previously forecast, in part due to an explosion of social unrest that began in December.

Real Brazil BRBYAnd brl= It was fixed against the dollar.

data showed Economic activity in Brazil decreased More than expected in November, the fourth consecutive month of contraction.

Shares in the Brazilian state oil company Petrobras PETR4.SA It fell more than 1%. The government has officially The company said Jean-Paul Pratis will be chief executive officer and board member.

Colombian peso COP = It fell 0.1% on Friday, and added 3.5% So far this week.

Emerging market bonds are off to a rocky start to the new year. Developing countries have sold out $39 billion in international bonds Since the start of 2023, investors are happily piling on junk debt as they bet that global interest rates are nearing a peak.

Stock indices and major currencies in Latin America 1918 GMT:

Stock indexes


Daily percentage change

MSCI Emerging Markets MSCIEF






Bovespa Brazil .BVSP



Mexico IPC .NXX






Argentina Merval .merv



Columbia Colcap colcap





Daily percentage change

The real Brazil BRBY



Mexican weight MXN = D2



Chili weight CLP = CL



Colombian weight COP =



Peru Sol pen = PE



Argentine peso (interbank) ARS=RASL



Argentine peso (parallel) ARSB=



(Reporting by Bansari Mayur Kamdar and Shriyashi Sanyal in Bengaluru. Editing by Sharon Singleton and Alistair Bell)

((Shreyashi.Sanyal@thomsonreuters.com; + 1646 223 8780; +91 961 144 3740; Twitter: https://twitter.com/s_shreyashi;))

The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.

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