MEXICO CITY, Oct 22 (Reuters) - Latin American currencies
gained on Tuesday after slower-than-expected jobs creation in
the United States supported the view that the U.S. Fed may
maintain its accommodative monetary policy into next year.
The Mexican peso led gains in the region, rallying
more than 1 percent, after the U.S. Labor Department said
employers added 148,000 jobs last month, fewer than the 180,000
posts expected by economists.
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 Fed's stimulus has held down yields on US Treasuries,
pushing investors to seek out higher returns in riskier assets,
such as emerging market currencies.
* The Mexican peso climbed 1.13 percent to 12.8450
per dollar, 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.
* A poll on Tuesday from Citigroup-unit Banamex showed an
increasing minority of analysts expect Mexico's central bank to
opt for a more aggressive 50-basis-point interest rate cut.
* Traders said a 25-basis-point cut would not likely hurt
the appeal of the peso, but a more aggressive 50-basis-point cut
could drive the Mexican currency back toward 13 per dollar.
* The Brazilian real firmed 0.51 percent amid
speculation the central bank could shift its intervention
program if the currency keeps gaining ground.
* Some analysts think Brazil's central bank will not roll
over all of the $8.9 billion worth of currency swaps that expire
early next month. The swaps are a hedge against a possible
depreciation of the real.
Latin America FX prices at 2300 GMT:
Currencies daily % YTD %
Brazil real 2.1720 0.51 -5.99
Mexico peso 12.8450 1.13 0.15
Chile peso 499.5000 0.46 -4.16
Colombia peso 1879.9000 0.24 -6.06
Peru sol 2.7540 0.73 -7.37
Argentina peso 5.8600 0.04 -16.17
Argentina peso 10.0300 -1.40 -32.40