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EMERGING MARKETS-Chile peso slumps ahead of elections, Mexico firms

MEXICO CITY, Nov 15 (Reuters) - Chile's peso weakened to an

almost two-year low on Friday on bets center-left candidate

Michelle Bachelet will win the presidency this weekend for a

second time, while Mexico's peso firmed to cap a strong week.

Latin American currencies got a lift this week on bets the

U.S. Federal Reserve, under the likely leadership of Janet

Yellen, will not move quickly to cut back monetary stimulus that

has supported demand for riskier assets around the globe.

* Chile's peso shed 0.42 percent to 521 per dollar.

Earlier this week it hit 524, its weakest since late 2011.

* Ex-president Michelle Bachelet is projected to easily win

Sunday's elections. Her pledge to raise corporate taxes and seek

more wealth redistribution has pressured the currency in recent


* Strategists at CitiFX said the Chilean peso could rally

back against the dollar if voters do not give Bachelet's

coalition a three-fifths majority in the senate, which would be

needed to pass major reforms.

* The Chilean peso has also been hurt by concerns that

prices for copper, the country's top export, will keep slumping

amid a global supply glut in the industrial metal.

* Mexico's peso firmed a slight 0.17 percent,

to gain just shy of 2 percent against the dollar during the

week, breaking back past the psychological 13-per-dollar level

to trade at 12.94 per dollar.

* The Mexican peso's gains marked its best week since

mid-September. Some strategists expected the currency to make

further ground toward the 12.80 level.

* Brazil's market was closed for a holiday. The Brazilian

real bounced back from a more than two-month low this week,

helped by the view the Fed as well as local central bank

intervention will prop up the currency.

* Brazil's central bank has been selling currency swaps to

provide investors with a hedge against a possible depreciation

of the real, helping reduce demand for dollars on the spot


Latin American currencies at 1740 GMT

Currencies daily % YTD %

change change


Brazil real 2.3136 0.32 -11.83

Mexico peso 12.9410 0.17 -0.59

Chile peso 521.0000 -0.42 -8.12

Colombia peso 1915.3300 0.53 -7.80

Peru sol 2.7980 0.00 -8.83

Argentina peso 5.9925 -0.04 -18.02

Argentina peso 9.9000 0.91 -31.52