EMERGING MARKETS-Latam currencies up as Fed seen signaling stimulus to stay

Reuters

RIO DE JANEIRO, Oct 30 (Reuters) - Latin American currencies

rose on Wednesday as investors bet the U.S. Federal Reserve will

signal its stimulus measures will remain in place into 2014,

supporting appetite for risk in emerging markets.

The Fed is widely expected to keep buying $85 billion worth

of bonds per month for the time being, but investors are eagerly

awaiting the statement at the end of its two-day monetary policy

meeting at 2 p.m. (1800 GMT) for clues on when it might begin to

reduce bond purchases.

Recent economic data underscoring the fragility of the U.S.

economic recovery, such as a Wednesday report showing that the

private sector hired in October the fewest number of workers in

six months, have fueled bets that the Fed will not start

tapering its bond-buying program until March 2014.

* The Brazilian real gained 0.3 percent, also

supported by a central bank plan to roll over most of the

currency swaps that expire on Nov. 1. Those swaps are

derivatives that offer investors protection against a possible

weakening of the currency.

* The Mexican peso rose 0.4 percent, as investors

watched the progress of a tax reform aimed at raising government

revenues.

* The Chilean peso climbed 0.3 percent after prices

of copper, the country's main export product, jumped

more than 1 percent to their highest level in a week.

Latin America FX prices at 1315 GMT:

Currencies daily % YTD %

change change

Latest

Brazil real 2.1880 0.31 -6.76

Mexico peso 12.8810 0.37 -0.13

Chile peso 507.4000 0.26 -5.66

Colombia peso 1881.1500 0.12 -6.12

Peru sol 2.7640 -0.29 -7.71

Argentina peso 5.8950 0.00 -16.67

Argentina peso 9.8700 -1.22 -31.31

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