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EMERGING MARKETS-Latam FX up as data suggests continued U.S. stimulus

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

risk.

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

Sao Paulo.

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 %

change change

Latest

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