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EMERGING MARKETS-Brazil real hovers 6-week low, Mexico peso dips

MEXICO CITY, Nov 1 (Reuters) - The Brazilian real slumped 1

percent to its weakest level in more than six weeks on Friday

and Mexico's peso slid on fears of a withdrawal of U.S. stimulus

which has boosted demand for riskier emerging market assets.

Data showed the U.S. manufacturing sector last month

expanded at its fastest pace in 2-1/2 years, raising speculation

that the Fed could move sooner than expected to wind down its

bond-buying program.

* The Brazilian real weakened 1.0 percent to

2.2567 per dollar. The cost of dollars in reais briefly rose

above the currency pair's 100-day simple moving average, but

pulled back to close just below the measure.

* Friday's losses came on top of a near 2.0 percent drop on

Thursday, marking the worst two-day slide since mid-August.

* Traders expect the real to strengthen to the level of 2.2

per dollar in coming days, however, as foreign oil companies

send dollars into the country to pay for a signing bonus related

to a concession to explore an offshore oil area.

* In an apparent attempt to cushion the real's losses,

central bank monetary policy director Aledo Luis Menders

stressed that the bank's current intervention program in foreign

exchange markets has no set end date.

* The Mexican peso slipped 0.33 percent to 13.0650

per dollar, its weakest level in three weeks, also hurt 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 2115 GMT:

Currencies daily % YTD %

change change


Brazil real 2.2567 -1.02 -9.60

Mexico peso 13.0650 -0.33 -1.54

Chile peso market



Colombia peso 1903.4000 -0.58 -7.22

Peru sol 2.7720 -0.51 -7.97

Argentina peso 5.9300 -0.30 -17.16

Argentina peso 9.8900 0.30 -31.45