EMERGING MARKETS-Mexican peso higher on investment plans, leads gains among Latam peers
By Shreyashi Sanyal
Oct 5 (Reuters) - The Mexican peso rose more than 1% on Monday after the government and business leaders unveiled a series of planned investments, while signs of improvement in Brazil's services sector pushed the real higher.
The peso MXN= jumped 1.4% against the dollar, to its highest level in more two weeks as the investments worth over 297 billion pesos ($13.83 billion) is the first concrete sign of a renewed readiness by corporate bosses to invest under President Andres Manuel Lopez Obrador.
Mexico's currency has lost 11.5% so far in the year, faring somewhat better than its peers, in part because of the strong connection with the U.S. economy, its main trading partner.
The peso remains exposed to volatility leading up to the Nov. 3 U.S. elections.
Brazil's real BRBY, BRL= strengthened 0.9% after a purchasing managers' survey showed domestic services sector expanded in September for the first time in seven months.
Analysts at BofA Global Research continued to see activity improving in Brazil, especially in the housing sector.
For all of Latin American BofA analysts expect volatility to build up entering the fourth quarter as headlines are filled with updates on U.S. elections, possible new waves of coronavirus and vaccines.
Stocks on Wall Street opened higher on hints President Donald Trump could return to the White House from hospital and hopes of a new fiscal stimulus bill. .N
Trump's medical condition remained unclear as he began a fourth day of treatment for COVID-19. His doctors have said he could be discharged as soon as Monday.
Most major units in the region rose as global risk sentiment improved, with the MSCI's index for Latin American currencies .MILA00000CUS rising 0.7%.
Oil exporter Colombia's peso COP= advanced as crude prices surged more than 6%, while the Chilean peso CLP= bucked the day's trend among peers to fall 0.7% as prices of its no.1 export, copper, fell.
Latin American stocks also rose, with Brazil's Bovespa and Mexican equities adding 0.7% each.
Latin American stock indexes and currencies:
Daily % change
MSCI Emerging Markets .MSCIEF
MSCI LatAm .MILA00000PUS
Brazil Bovespa .BVSP
Mexico IPC .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia COLCAP .COLCAP
Daily % change
Brazil real BRBY
Mexico peso MXN=D2
Chile peso CLP=CL
Colombia peso COP=
Peru sol PEN=PE
Argentina peso (interbank) ARS=RASL
Argentina peso (parallel) ARSB=
(Reporting by Shreyashi Sanyal in Bengaluru; editing by Grant McCool)
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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