RIO DE JANEIRO, Oct 25 (Reuters) - The Brazilian real rose
more than half a percentage point early on Friday after the
central bank announced it will continue to roll over currency
swaps that expire early next month, providing additional support
to the exchange rate.
The Mexican peso was little changed, however, as investors
awaited a key monetary policy decision at 1400 GMT.
During the past few days, Latin American currencies in
general have been supported by bets that the U.S. Federal
Reserve will delay the unwinding of its bond-buying program,
which for years has supported investors' appetite for emerging
* Brazil's real rose 0.9 percent to 2.1820 per
dollar after the central bank last announced last night that it
will continue to roll over currency swaps maturing on Nov. 1
with three auctions next Monday, Tuesday and Wednesday. Such
swaps are derivatives that provide investors with protection
against a depreciation of the real.
* The announcement surprised many investors who thought
Brazilian policymakers had already concluded the roll-over of
the $8.9 billion worth of currency swaps that expire early next
month. Bets on a partial roll-over increased as the real
recently traded at four-month highs.
* Brazil's central bank has so far rolled over nearly $3
billion of the swaps maturing in November. It has still not
announced how many swaps it will offer during next week's
* The Mexican peso was little changed at 12.98 per
dollar as investors have mostly priced in a 25-basis-point
interest rate cut that should take Mexico's benchmark rate to
* The Chilean peso lost 0.4 percent, however,
tracking a half percentage point decline in the price of copper
, the country's main export product.
Latin America FX prices at 1245 GMT:
Currencies daily % YTD %
Brazil real 2.1820 0.85 -6.51
Mexico peso 12.9635 0.09 -0.77
Chile peso 505.1000 -0.32 -5.23
Peru sol 2.7610 0.14 -7.61
Argentina peso 5.8675 -0.04 -16.28
Argentina peso 10.0600 0.20 -32.60
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