U.S. markets open in 7 hours 35 minutes
  • S&P Futures

    -5.25 (-0.12%)
  • Dow Futures

    -24.00 (-0.07%)
  • Nasdaq Futures

    -22.25 (-0.16%)
  • Russell 2000 Futures

    +0.20 (+0.01%)
  • Crude Oil

    +0.20 (+0.23%)
  • Gold

    +1.70 (+0.10%)
  • Silver

    -0.11 (-0.54%)

    -0.0008 (-0.08%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    +0.21 (+1.07%)

    -0.0013 (-0.11%)

    -0.0030 (-0.00%)

    -713.15 (-2.95%)
  • CMC Crypto 200

    -15.41 (-2.69%)
  • FTSE 100

    -20.31 (-0.27%)
  • Nikkei 225

    -252.87 (-0.87%)

EMERGING MARKETS-Latam currencies rise as dollar slides after U.S. manufacturing data

·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

* Brazil sees $5.4 bln trade surplus in July vs est. ~$7 bln * Peru inflation slows from June's 25-year peak * Chile June economic activity index +3.7% vs est. +4% (Updates prices; adds details, comment) By Susan Mathew and Anisha Sircar Aug 1 (Reuters) - Latin American currencies rose on Monday, with Chile's peso leading gains, as the dollar slipped following data that signalled U.S. inflation has probably peaked. Factories across the United States, Europe and Asia struggled in July as flagging global demand and China's COVID-19 restrictions slowed production, surveys showed. U.S. manufacturing activity, in particular, slowed less than expected, lending weight to bets that the Federal Reserve might not be more aggressive than anticipated at its September meeting, denting the dollar. The Mexican peso was up 0.1%, rising for five of the last six sessions. As copper prices rose, top exporter Chile saw its peso rise 1.0%, as did crude exporter Colombia's currency despite falling oil prices. The Colombian currency extended gains made after the central bank hiked on Friday by 150 bps to 9% as expected. Chile's IMACEC economic activity index, a close proxy of gross domestic product, rose 3.7% in June from the same month last year, the central bank said. That was below expectations of a 4% rise, according to a Reuters poll. Brazil's real slipped 0.2% in choppy trade. The country posted a lower-than-expected trade surplus of $5.44 billion in July, below forecasts of a $6.99 billion surplus, with growth in imports again strongly outpacing that of exports. The central bank of Latam's largest economy is seen delivering a second consecutive 50 basis points hike on Wednesday, bringing the benchmark interest rate to 13.75%. The bank's aggressive moves since March last year has helped the currency surge 7.5% so far this year, faring better than a 0.7% rise for its regional peer, Mexico's peso, and far outperforming an over 4% slide for the emerging markets currencies (EM) index. "EM central banks will press ahead with monetary tightening over the remainder of this year, in some cases by more than investors seem to anticipate... risk premia will edge higher still as the global economy continues to struggle," said James Reilly, assistant economist at Capital Economics. Stocks in Latin America were muted, in line with U.S. stocks, as the slew of worrying factory activity data from across the globe reinforced recession fears. "Investors’ appetite for risk will recover as the economic situation gradually improves," Reilly added. Elsewhere, Peru's annual inflation rate in July edged lower to hit 8.74% on a yearly basis from a peak of 8.81% in June, which was the highest in a quarter of a century. Key Latin American stock indexes and currencies at 1930 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 992.98 -0.08 MSCI LatAm 2105.69 -1.01 Brazil Bovespa 102334.69 -0.8 Mexico IPC 47504.46 -1.33 Chile IPSA 5231.48 -0.51 Argentina MerVal 118150.83 -3.573 Colombia COLCAP 1274.96 -1.62 Currencies Latest Daily % change Brazil real 5.1850 -0.25 Mexico peso 20.3896 -0.19 Chile peso 891.9 0.80 Colombia peso 4268.1 0.22 Peru sol 3.8823 0.71 Argentina peso 131.8900 -0.46 (interbank) Argentina peso 277 6.86 (parallel) (Reporting by Susan Mathew and Anisha Sircar in Bengaluru; Editing by Marguerita Choy and Alistair Bell)