EMERGING MARKETS-Latam FX mostly gains on Fed stimulus bets

Reuters

RIO DE JANEIRO, Oct 24 (Reuters) - Most Latin American

currencies gained on Thursday as hopes that the U.S. Federal

Reserve would delay unwinding its monetary stimulus fueled

appetite for risk assets in emerging markets.

But the Brazilian real was an exception. It weakened as the

country's central bank rolled over less than half the currency

swaps that expire early next month. The bank has been selling

those contracts to offer investors protection against a possible

weakening of the real.

Expectations that the Fed will keep the current pace of its

bond-buying program at least until the end of the year remained

elevated after data showed the number of Americans filing new

claims for unemployment benefits fell less than expected last

week.

* The Mexican peso gained 0.2 percent to 12.9730 per

dollar, crossing its 30-day moving average of 12.9815.

* The peso had weakened earlier this week as investors

mostly priced in a 25-basis-point interest rate cut that should

take Mexico's benchmark rate to 3.5 percent on Friday.

* The Brazilian real weakened 0.6 percent to

nearly 2.2 per dollar, however, as the central bank rolled over

less than $3 billion of the $8.9 billion worth of currency swaps

that expire early next month.

* Brazil's central bank decision to roll over only part of

the expiring swaps came a few days after the real hit its

strongest level in four months. "The (partial) roll-over was a

way for the central bank to curb currency gains," said Reginaldo

Galhardo, a manager at the currency desk of Treviso brokerage in

Sao Paulo.

Latin America FX prices at 1720 GMT:

Currencies Daily YTD pct

pct change

Latest change

Brazil real 2.2000 -0.64 -7.27

Mexico peso 12.9730 0.21 -0.84

Chile peso 503.5000 0.32 -4.93

Colombia peso 1881.2000 0.07 -6.12

Peru sol 2.7580 0.25 -7.51

Argentina peso 5.8675 -0.04 -16.28

Argentina peso 10.0600 0.20 -32.60

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