EMERGING MARKETS-Latam currencies slip on U.S. rate hike expectations
SAO PAULO, Feb 21 (Reuters) - Latin American currencies slipped on Tuesday after remarks by two U.S. policymakers fueled expectations of a Federal Reserve interest rate increase next month.
Cleveland Fed President Loretta Mester said on Monday she would be conformable hiking rates at this point if the economy maintained its current pace.
Her speech echoed comments by Philadelphia Fed President Patrick Harker to Market News International, who said a March rate increase was an option.
Higher U.S. rates could drain capital away from high-yielding emerging markets, weighing on their currencies. The Brazilian real weakened 0.2 percent, while the Mexican peso fell 0.5 percent.
Losses were limited by a weaker-than-expected reading on the U.S. services sector, with Markit's U.S. services PMI falling to the lowest since September.
Latin American stock markets advanced, supported by rising prices of iron ore and crude futures.
Brazil's benchmark Bovespa stock index advanced 0.3 percent as shares of state-controlled oil company Petróleo Brasileiro SA rose.
Still, shares of miner Vale SA fell 0.6 percent as traders booked profits on a recent rally that drove them to a four-year peak.
Shares of toll road operator Ecorodovias Infraestrutura e Logística SA were among the biggest gainers after the company reported stronger fourth-quarter revenue and operating profits.
Key Latin American stock indexes and currencies at 1520 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 944.78 0.13 9.43 MSCI LatAm 2656.84 0.09 13.41 Brazil Bovespa 68759.49 0.33 14.17 Mexico IPC 47606.60 1.11 4.30 Chile IPSA 4358.45 0.06 4.99 Chile IGPA 21795.95 0.05 5.12 Argentina MerVal 20101.84 0.31 18.82 Colombia IGBC 9970.75 -0.32 -1.55 Venezuela IBC 35130.07 0.66 10.80 Currencies daily % YTD % change change Latest Brazil real 3.0965 -0.30 4.93 Mexico peso 20.4275 -0.34 1.55 Chile peso 643.6 -0.40 4.21 Colombia peso 2905.15 -0.85 3.32 Peru sol 3.25 -0.12 5.05 Argentina peso (interbank) 15.7150 0.10 1.02 Argentina peso (parallel) 16.45 0.24 2.25 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)
