RIO DE JANEIRO, Oct 29 (Reuters) - Latin American currencies
weakened slightly on Tuesday as investors awaited the U.S.
Federal Reserve to shed light on the future of its stimulus
program, which will be key factor in the appeal of risk for
investors over the next few months.
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 on Wednesday for clues on when it might begin to reduce
Expectations the U.S. central bank will not start tapering
its bond-buying program until March 2014 boosted the appetite of
investors for emerging markets assets last week.
* The Brazilian real weakened 0.12 percent to
close at 2.1812 per dollar. The currency has been 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
* The Mexican peso 12.9290 per dollar, easing 0.35
percent after the central bank cut interest rates on Friday for
the third time this year to counter a slump in growth.
* The Chilean peso lost 0.33 percent as investors
continued to cut long positions after the currency weakened past
its 100-day simple moving average in the previous session.
Latin America FX prices at 2253 GMT:
Currencies daily % YTD %
Brazil real 2.1812 -0.12 -6.47
Mexico peso 12.9290 -0.35 -0.50
Chile peso 508.7000 -0.33 -5.90
Colombia peso 1883.4900 0.03 -6.24
Peru sol 2.7640 -0.29 -7.71
Argentina peso (interbank) 5.8925 0.00 -16.63
Argentina peso (parallel) 9.8700 -1.22 -31.31