RIO DE JANEIRO, Oct 22 (Reuters) - Latin American currencies
gained on Tuesday after a slower-than-expected jobs creation in
the United States supported the view that U.S. stimulus will
remain in place for longer, adding to investors' appetite for
The Mexican peso led gains in the region, up half a
percentage point, after the U.S. Labor Department said employers
added 148,000 jobs last month, fewer than the 180,000 posts
expected by economists.
"The negative economic data increase the chances that the
U.S. Federal Reserve will be more cautious when cutting back on
stimulus, which will result in a weaker dollar," said Flavio
Serrano, senior economist with Espirito Santo Investment Bank in
The U.S. non-farm payrolls data for September was delayed by
a 16-day partial shutdown of the U.S. government this month.
Latin American currencies had already rallied earlier this month
as investors bet the Fed would keep the stimulus in place for
longer to offset the negative economic impact of the shutdown.
* The Mexican peso climbed 0.7 percent, recovering
almost all of the losses incurred on Monday, when weak local
retail sales data supported bets that the central bank will
lower interest rates later this week.
* Most analysts expect the Mexican central bank to cut its
benchmark interest rate for the second month in a row on Friday,
by 25 basis points to 3.5 percent, potentially reducing the
allure of the peso.
* The Brazilian real posted a more modest gain
of 0.1 percent, however, as investors feared the central bank
would not roll over all of the $8.9 billion worth of currency
swaps that expire early next month.
* Brazil's central bank said late on Monday it would offer
as many as 20,000 currency swaps on Tuesday to start rolling
over the nearly 200,000 contracts that mature on Nov. 1. The
bank also said it could continue to roll over those swaps on
Wednesday and Thursday, but did not specify how many contracts
it would offer.
Latin America FX prices at 1315 GMT:
Currencies daily % YTD %
Brazil real 2.1790 0.10 -6.38
Mexico peso 12.9040 0.67 -0.31
Chile peso 500.3000 0.30 -4.32
Colombia peso 1880.2500 0.22 -6.08
Peru sol 2.7740 -0.29 -8.04
Argentina peso 5.8600 0.04 -16.17
Argentina peso 9.8600 0.20 -31.24