EMERGING MARKETS-Latam currencies gain as Fed seen keeping stimulus

Reuters

RIO DE JANEIRO, Oct 17 (Reuters) - Latin American currencies

rose on Thursday as investors saw the U.S. Federal Reserve

keeping its stimulus measures for longer to offset the negative

impact of the U.S. government shutdown.

The possibility of another fiscal impasse in Washington

early next year also contributed to the view the Fed will delay

to 2014 an expected tapering of its bond-buying program, which

provides a steady source of dollars seeking higher returns in

emerging market economies.

The fiscal deal approved by the U.S. Congress last night

offers only a temporary fix to the country's fiscal crisis,

funding the government until Jan 15 and raising the debt ceiling

until Feb 7.

* The Mexican peso gained 0.7 percent to 12.7495 per

dollar, its strongest level in more than three weeks.

* The Brazilian real strengthened 0.6 percent,

also supported by a late central bank confirmation that it would

sell currency swaps on Thursday.

* Speculation that Brazilian policymakers were reviewing

their program of daily currency intervention increased when the

central bank failed to announce, before markets close on

Wednesday, the details of the contracts that would be offered on

the following day.

* The central bank said on Thursday that, due to "technical

reasons," from now on it will announce the details of the

following day's swap auction after markets close, between 7:30

p.m. and 8:30 p.m. local time (2230-2330 GMT).

* The Chilean peso rose 0.4 percent to a four-month

high of 493.90 per dollar.

Latin America FX prices at 1745 GMT:

Currencies daily % YTD %

change change

Latest

Brazil real 2.1625 0.51 -5.66

Mexico peso 12.7495 0.71 0.90

Chile peso 493.9000 0.36 -3.08

Colombia peso 1880.5000 0.19 -6.09

Peru sol 2.7510 0.36 -7.27

Argentina peso 5.8500 -0.13 -16.03

Argentina peso 9.7800 -0.20 -30.67

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