Band Bansari Mayur Kamdar
May 31 (Reuters) – The Brazilian real appreciated on Tuesday like the country the jobless rate fell to its lowest level in nearly six years, while currencies and stocks headed for their fourth month of gains this year.
The Latam Currency Index .MILA00000CUS is up 5.5% so far in May, outperforming broader emerging market currencies .MIEM00000CUSboosted by strong monthly increases in the Brazilian real BRL= and the Mexican peso MXN=.
“You have a situation where the rest of the world looks so much more chaotic than Latin America that the reward comes in the form of dramatic improvement in those currencies,” said Juan Perez, trading director at Monex.
“You start to realize at the end of May how complicated the first half of the year was.”
The true of Brazil BRBY, BRL= gained 0.2% after data showed its unemployment rate fell to 10.5% in the three months to April, making it the lowest since the start of 2016.
Petrobras PETR4.SA rose 1%, boosting Brazil’s Bovespa index .BVSPwhile the Ministry of Mines and Energy has formalized a request for the public oil company to be included in the Investment Partnerships Program (PPI), which would be the first step towards its eventual privatization.
The Mexican peso MXN= fell 0.9% against a stronger dollar =USD in a market attentive to appearances by members of the Federal Reserve and the agreement of the European Union to ban most imports of Russian crude.
Data showed Mexico’s seasonally adjusted unemployment rate was 3.1% in April, down from 3.5% in March.
Meanwhile, the Colombian peso COP= extended gains after hitting a five-week high in the previous session following Sunday’s results of the first round of presidential elections where leftist Gustavo Petro won the highest votes and business-friendly construction mogul Rodolfo Hernandez came second. EMRG/FRX
COLCAP .COLCAP the stock market rose 4.43%, in its first session since the contest.
The Chilean peso CLP= gained 1.2% and outperformed its peers even as data showed copper output from the world’s largest producer of the metal fell more than expected to 9.8% year-on-year in April.
Argentina has reached an agreement with the Paris Club group of lenders to postpone debt repayment until September 2024, an official newspaper confirmed early Tuesday morning, as part of a renegotiation around its 2 billion debt. of dollars.
Elsewhere, the Hungarian forint EURHUF= fell 0.8% after the central bank slowed the pace of its rate hikes even as inflation is expected to accelerate to double digits in the coming months before it can peak later this year .
Main stock indices and currencies in Latin America at 15:15 GMT:
% daily change
MSCI Emerging Markets .MSCIEF
MSCI Latam .MILA00000PUS
Mexico IPC .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia COLCAP .COLCAP
% daily change
Brazilian real BRBY
mexican peso MXN=D2
chilean peso CLP=CL
Colombian peso COP=
Soil of Peru PEN=PE
Argentinian peso (interbank) ARS=RASL
Argentinian peso (parallel) ARSB=
(Reporting by Bansari Mayur Kamdar in Bengaluru Editing by Alistair Bell)
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