RIO DE JANEIRO, Nov 1 (Reuters) - The Brazilian real led
Latin American currencies down on Friday as investors tested new
technical levels after the currency sold off about 2 percent in
the previous session on fears of an early withdrawal of U.S.
Concerns that the U.S. Federal Reserve may start winding
down its bond-buying program this year, potentially reducing the
flow of dollars seeking higher yields in emerging markets, have
caused Latin American currencies to weaken in the past few days.
Those fears were on the rise again on Friday after data
showed the U.S. manufacturing sector expanded at its fastest
pace in 2-1/2 years last month.
* The Brazilian real weakened to as much as
2.2593 per dollar, briefly crossing its 100-day simple moving
average, considered by analysts as a key resistance level for
* The real had already weakened nearly 2 percent on
Thursday, breaking key resistance marks that encouraged
investors to test weaker levels for the currency.
* Traders expect the real to strengthen back to the level of
2.2 per dollar in coming days, however, as dollars as foreign
oil companies send dollars into the country to pay for a signing
bonus related to a concession to explore the offshore oil area
* In an apparent attempt to cushion the real's losses,
central bank monetary policy director Aldo Luis Mendes stressed
that the bank's current intervention program in foreign exchange
markets has no set date to end.
* The Mexican peso slid 0.3 percent to 13.0550 per
dollar, its weakest level in three weeks, also weighed by data
showing the country's factories remained stagnant in October
despite recent interest-rate cuts by the central bank.
Latin America FX prices at 1505 GMT:
Currencies daily % YTD %
Brazil real 2.2467 -0.58 -9.20
Mexico peso 13.0550 -0.26 -1.46
Chile peso 506.9000 0.36 -5.56
Colombia peso 1899.4000 -0.37 -7.02
Peru sol 2.7720 -0.51 -7.97
Argentina peso 5.9175 -0.08 -16.98
Argentina peso 9.8600 0.61 -31.24