EMERGING MARKETS-Latam currencies flat on anxiety over US debt deal

Reuters

RIO DE JANEIRO, Oct 14 (Reuters) - Latin American currenciesheld on to recent gains as investors hoped a meeting betweenPresident Barack Obama and Congressional leaders would lead to adeal to extend the U.S. debt ceiling, averting a historicdefault.

News of the meeting, scheduled for this afternoon but laterpostponed, drove key U.S. stock indexes into positive territoryand encouraged investors to retain positions in emergingmarkets.

Latin American currencies had rallied on Friday as investorshoped U.S. lawmakers would make progress during the weekendtoward a deal to increase the nation's debt ceiling.

* The Brazilian real ended little changed at2.1765 per dollar, its strongest close since mid-June. Talk thatthe central bank could decide not to rollover all of the $8.9billion worth of currency swaps that expire on Nov 1 caused thereal to post some losses earlier.

* Mexico's peso was practically flat at 12.9883 perdollar, holding past the psychological relevant level of 13 perdollar.

* Trading volumes were low across the region as manyinvestors were on the sidelines awaiting a solution to the U.S.fiscal crisis, and others were out of the office due to the U.S.Columbus Day holiday.

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