* Latam FX index set for worst week in over one month * Colombian central bank holds benchmark rate steady * Brazil's real rises after central bank FX intervention (Updates prices throughout; adds bullets, comments) By Shreyashi Sanyal Oct 30 (Reuters) - Mexico's peso rose on Friday, set to end a tumultuous week on a positive note after data signaled a strong economic rebound, while the Colombian currency traded in a tight range after the country's central bank kept interest rates unchanged. The peso rose 0.7% against the dollar after preliminary data showed Mexico's economy grew 12.0% in the third quarter, making up for much of the contraction in the previous three months at the height of the coronavirus lockdown. U.S. demand helped Mexico rack up large trade surpluses during the past four months, as exports picked up speed.
The peso rose 0.9% against the dollar after preliminary data showed Mexico's economy grew 12.0% in the third quarter, making up for much of the contraction in the previous three months at the height of the coronavirus lockdown. Colombia's peso was flat as traders refrained from making big bets ahead of an interest rate decision by the country's central bank, with expectations of the bank leaving its benchmark rate unchanged later in the day.
Emerging market currencies struggled to rise in the wake of a strengthening dollar, which extended gains as worries remained about Europe's second wave of coronavirus infections and traders pricing in the possibility of Democratic candidate Joe Biden winning the U.S. election on Nov. 3. Brazil's real fell 0.4%, a day after the country's central bank kept its key interest rate at a record-low 2.00%, maintaining its "forward guidance" pledge to keep rates lower for longer and even the possibility of further easing, despite the recent rise in inflation and fiscal risks. In an analysis by Reuters, a Biden victory in next week's election could put the environment and human rights at the top of the country's agenda with Brazil, complicating relations with Brazilian President Jair Bolsonaro and jeopardizing trade, diplomats.