EMERGING MARKETS-Brazil real gains as central bank rolls over swaps


RIO DE JANEIRO, Oct 28 (Reuters) - The Brazilian real edged

higher on Monday, bucking a weakening trend in Latin America,

supported by a central bank plan to roll over currency swaps,

derivative contracts that provide investors with protection

against a possible currency depreciation.

Other Latin American currencies declined, however, as

investors pocketed part of a recent rally that had been fueled

by bets that the U.S. Federal Reserve will signal this week that

its stimulus plan will remain in place for longer.

The Fed is widely seen keeping the pace of its bond-buying

program unchanged at $85 billion per month at the end of its

two-day meeting on Wednesday. Expectations that it will not

begin withdrawing that stimulus until March 2014 have boosted

investors' appetite emerging markets assets.

* The Brazilian real gained 0.2 percent as the

country's central bank sold all the 20,000 currency swaps it had

offered to roll-over similar contracts expiring on Nov. 1.

* Brazil's central bank will hold two more auctions this

week to roll over the $8.9 billion of currency swaps that expire

early next month. So far, policymakers have renewed nearly $4

billion of those contracts.

* The Mexican peso dropped 0.2 percent, easing

slightly after a rally that also was boosted by a central bank

statement on Friday signaling no more interest rate cuts are in

the pipeline.

* The Chilean peso ended 0.3 percent weaker at a

seven-week low of 507.00 per dollar, crossing its 100-day simple

moving average of 505.05 per dollar.

Latin America FX prices at 1803 GMT:

Currencies daily % YTD %

change change


Brazil real 2.1832 0.22 -6.56

Mexico peso 12.9015 -0.17 -0.29

Chile peso 507.0000 -0.30 -5.58

Colombia peso 1884.0500 -0.08 -6.27

Peru sol 2.7540 0.18 -7.37

Argentina peso 5.8900 -0.08 -16.60

Argentina peso 9.8900 2.12 -31.45

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