EMERGING MARKETS-Latin American currencies dip on profit-taking

November 25, 2013

RIO DE JANEIRO, Nov 25 (Reuters) - Latin American currencies

weakened slightly on Monday as investors pocketed recent gains

in a market that remains cautious about the timing of an

expected withdrawal of U.S. economic stimulus.

A deal to curb Iran's nuclear program encouraged investors

on Wall Street but failed to boost appetite for emerging market

currencies and stocks, whose performance remains closely tied to

the outlook for U.S. monetary policy.

Expectations that U.S. interest rates would remain near zero

for years, even after the Federal Reserve starts winding down

its bond-buying program, fueled a rally in Latin American

currencies on Friday.

* Brazil's real was 0.1 percent weaker after

rallying 1 percent on Friday. The currency briefly strengthened

past its 100-day moving average last week but failed to hold

onto gains.

* Losses in the real were curbed by regular central bank

auctions of currency swaps, derivatives that mimic a sale of

dollars in the futures market. On Monday the bank sold 10,000

swaps through its daily intervention program and another 20,000

swaps to roll over similar contracts that expire on Dec. 2.

* Mexico's peso lost 0.4 percent to 13.0275

per dollar, erasing all of the gains recorded in the previous

session and crossing past the psychologically relevant mark of

13 per dollar.

* The Chilean peso lost 0.3 percent even as central

bank chief Rodrigo Vergara sounded more hawkish by saying that

the country's key interest rate is now at a neutral level and

that the bank has not launched a "permanent" reduction cycle.

Latin American currencies at 1820 GMT:

Currencies Daily YTD pct

pct change

Latest change

Brazil real 2.2835 -0.09 -10.66

Mexico peso 13.0275 -0.42 -1.25

Chile peso 520.9000 -0.27 -8.10

Colombia peso 1,924.8000 0.20 -8.25

Peru sol 2.8030 -0.04 -8.99

Argentina peso 6.0800 -0.33 -19.20

Argentina peso 9.8900 0.51 -31.45