U.S. markets close in 5 hours 34 minutes
  • S&P 500

    +15.47 (+0.31%)
  • Dow 30

    -33.26 (-0.09%)
  • Nasdaq

    +107.24 (+0.67%)
  • Russell 2000

    +26.39 (+1.29%)
  • Crude Oil

    0.00 (0.00%)
  • Gold

    +14.10 (+0.69%)
  • Silver

    +0.21 (+0.92%)

    +0.0008 (+0.08%)
  • 10-Yr Bond

    -0.0410 (-0.96%)

    +0.0017 (+0.14%)

    -1.3560 (-0.90%)
  • Bitcoin USD

    +2,152.61 (+3.53%)
  • CMC Crypto 200

    0.00 (0.00%)
  • FTSE 100

    +31.67 (+0.42%)
  • Nikkei 225

    -41.84 (-0.11%)

EMERGING MARKETS-Chile's peso slumps on plan to increase international reserves

* Chile's cenbank announces $10 bln forex reserves program * Brazilian economists lower long-term inflation forecasts * Latam FX down 0.2%, stocks down 0.4% By Amruta Khandekar and Bansari Mayur Kamdar June 12 (Reuters) - The Chilean peso slumped about 2% on Monday after the country announced steps to boost international reserves, while most other Latin American currencies were subdued as investors braced for a slew of major central bank decisions this week. The peso fell 2.2% against the dollar by 1427 GMT and was set for its biggest one-day percentage drop in nearly three months, dragging the broader Latam currencies index down 0.2%. Chile's central bank announced a $10 billion program on Friday to replace and increase the country's international reserves. The bank will run the program for one year starting June 13, it said in a statement, through regular day purchases of $40 million dollars through competitive auctions. "Chile's peso is losing value as its central bank gets out more of its pesos out there to bring in dollars and re-strengthen their foreign currency reserves," said Juan Perez, director of trading at Monex. Chile's central bank is expected to maintain the country's benchmark interest rate at 11.25% at its monetary policy meeting later next week, but would fall to 10.75% in July a central bank poll of analysts suggested on Monday. "Although the BCCh (Chile's central bank) indicates that this accumulation of reserves should not be read with implications for monetary policy, we see that the BCCh has strategically decided to start this accumulation of reserves early to assess the impact on the CLP before starting the process of cuts in the benchmark rate," said Aníbal Alarcón, senior economist at Scotiabank in a note. The Brazilian real was down 0.3% against the greenback. Brazilian economists reduced their 2025 inflation projections to 3.9%, down from the previous estimate of 4.0% to end to months of unchanged projections that the central bank had cited as a cause for concern. Also weighing on Latam markets was a slide in commodity prices as the dollar firmed ahead of a number of monetary policy decisions from major central banks, including the U.S. Federal Reserve, in the coming days. Mexico's peso was flat as lower oil prices pressured the currency of the leading crude exporter. The Peruvian sol, the currency of a major copper exporting nation, was down 0.5% as concerns about demand from top consumer China pulled down prices of the red metal. Colombian stock markets were closed for a holiday. Elsewhere, The Turkish lira slipped to a new record low as investors waited for indications on policy moves after the appointment of a new central bank governor who is expected to raise interest rates. Key Latin American stock indexes and currencies at 1427 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1003.13 0.08 MSCI LatAm 2424.27 -0.33 Brazil Bovespa 117024.28 0 Mexico IPC 54355.25 -0.29 Chile IPSA 5685.96 -0.09 Argentina MerVal 379427.48 -0.612 Currencies Latest Daily % change Brazil real 4.8919 -0.33 Mexico peso 17.2847 -0.04 Chile peso 806.1 -2.22 Colombia peso 4177.2 0.01 Peru sol 3.6491 -0.44 Argentina peso 246.7000 -0.69 (interbank) Argentina peso 478 1.26 (parallel) (Reporting by Amruta Khandekar, editing by Ed Osmond)