EMERGING MARKETS-Latam currencies mixed as Fed signals stimulus to stay

Reuters

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

were mixed on Wednesday after the U.S. Federal Reserve extended

its stimulus program as expected, supporting appetite for risk

in emerging markets.

The Fed announced plans to keep buying $85 billion worth of

bonds per month in a nod to weaker economic signals that in part

have been due to a fiscal fight in Washington that shuttered

much of the government for 16 days earlier this month.

Recent economic data has underscored the fragility of the

U.S. economic recovery, such as a Wednesday report showing that

the private sector in October hired the fewest number of workers

in six months.

The Fed repeated on Wednesday that it would keep rates near

zero as long as the U.S. jobless rate remained above 6.5 percent

and inflation did not threaten to rise above 2.5 percent.

* The Brazilian real lost 0.43 percent to

close at 2.1905, despite 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 was nearly flat, gaining 0.03

percent to 12.9250 per dollar as investors watched the progress

of a tax reform aimed at raising government revenues.

* The Chilean peso climbed 0.36 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 2323 GMT:

Currencies daily % YTD %

change change

Latest

Brazil real 2.1905 -0.43 -6.87

Mexico peso 12.9250 0.03 -0.47

Chile peso 506.9000 0.36 -5.56

Colombia peso 1883.0000 0.03 -6.21

Peru sol 2.7590 0.18 -7.54

Argentina peso (interbank) 5.9025 -0.13 -16.77

Argentina peso (parallel) 9.8800 0.40 -31.38

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