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EMERGING MARKETS-Latam FX firm as dollar stays steady

Credit: REUTERS/Jose Luis Gonzalez

Latin American currencies firmed against a steady dollar on Tuesday with Mexico's peso extending gains logged after U.S. President Donald Trump called off punitive tariffs on Mexican goods, while Brazil's real looked set to reverse last session's losses.

June 11 (Reuters) - Latin American currencies firmed against a steady dollar on Tuesday with Mexico's peso extending gains logged after U.S. President Donald Trump called off punitive tariffs on Mexican goods, while Brazil's real looked set to reverse last session's losses.

The dollar steadied as investors focused on the upcoming G20 summit for any progress on the U.S.-China trade war that has weighed on global growth.

Trump said he was ready to impose another round of tariffs on Chinese imports if no progress is made in trade talks with Chinese President Xi Jinping at the G20 summit later this month. FRX/

Mexico's peso MXN= firmed 0.3% after logging its best day in almost a year on Monday on news that Mexico and United States had struck a migration deal that averted U.S. tariffs of an initial 5% that were set to take effect this week. Washington said tariffs may be revisited if not enough progress is made to stem illegal immigration from Mexico.

"This is unlikely to affect markets in the near term," said Paul Donovan, chief economist at UBS Global Wealth Management.

Mexico said Brazil may be one the countries that may need to be brought in to control migration to the United States via the Mexican border as it was among the countries that migrants first reach in their journey north.

Brazil's real BRL= rose 0.5%, recovering from last session's 0.2% dip on worries over crucial pension reforms.

Political tensions were in play after leaked messages published by a news website raised serious questions about the impartiality of Brazil's current justice minister, Sergio Moro, a former judge who sent former President Luiz Inacio Lula da Silva to prison.

Lawmakers in Brasilia suggested the controversy would not slow their work on an overhaul of the country's social security system, which the government considers essential to kick-starting an economic recovery.

Stocks in Sao Paulo .BVSP hit their highest in 12 weeks with commodity and energy heavyweights boosting the index on higher iron ore, copper and oil prices. IRONORE/

The bounce in prices of copper - Chile's main export - put its currency CLP= on course to erase Monday's near 1% decline posted on a surprise 50 basis point rate cut by the central bank late on Friday. MET/L

Colombia's peso COP= touched an over-one-month high, with higher oil prices helping the crude exporter's currency. O/R

Key Latin American stock indexes and currencies at 1340 GMT:

Stock indexes

Latest

Daily % change

MSCI Emerging Markets .MSCIEF

1031.42

0.92

MSCI LatAm .MILA00000PUS

2768.17

0.79

Brazil Bovespa .BVSP

97906.89

0.45

Mexico IPC .MXX

-

-

Chile IPSA .SPCLXIPSA

5030.09

0.22

Argentina MerVal .MERV

-

-

Colombia IGBC .IGBC

-

-

Currencies

Latest

Daily % change

Brazil real BRBY

3.8663

0.44

Mexico peso MXN=D2

19.1500

0.35

Chile peso CLP=CL

693.2

0.88

Colombia peso COP=

3241.95

0.42

Peru sol PEN=PE

3.333

0.00

Argentina peso (interbank) ARS=RASL

-

-

(Reporting by Susan Mathew in Bengaluru; Editing by Will Dunham)

((susan.mathew@thomsonreuters.com; +91-80-6749-1130; Reuters Messaging: susan.mathew.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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