EMERGING MARKETS-Latam FX muted, Chile's peso snaps 6-day winning streak

  • 9/6/2021
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(Adds details, updates prices) By Susan Mathew and Ambar Warrick Sept 6 (Reuters) - Most Latin American currencies moved little on Monday, with Chile"s peso breaking a six-day winning streak as the dollar regained momentum, while Brazil"s real rose slightly. The dollar lifted off one-month lows as weak data from around the globe last week spurred worries over slowing global growth. "Recent U.S. data points to some moderation in growth rebound momentum and this reinforces our bias for the Fed to be patient in its pace of policy normalization," said currency strategists at Maybank. "But global growth concerns could still induce some intermittent buy-on-dips for the dollar." Chile"s peso fell 0.8% after gaining 2.7% over the last six sessions. Minera Lumina Copper said it had reached a deal with workers at its Caserones mine in Chile, ending an almost month-long strike. Prices of copper, Chile"s biggest export, inched higher. Brazil"s real rose 0.2% as investors awaited inflation data later this week, which is likely to factor into central bank rate hikes this year. Brazilian Economy Minister Paulo Guedes said on Friday that inflation had reached its worst point, with 12-month inflation currently near 9%, and that he expected it to fall gradually to near 7% by year"s end. Interest rate hikes by the central bank to control inflation had helped the currency find some support amid rising political uncertainty, which had cost the real its place as the best- performing emerging market currency this year. Mexico"s peso rose 0.1%, extending gains to a seventh straight session and staying close to three-week highs. Carry trade, in which investors borrow in a low-yielding currency to invest in higher-yielding assets, has helped the currency stay afloat and often outperform regional peers this year. The peso is the only Latam currency in positive territory for the year, albeit marginally. Data on Monday showed Mexican gross fixed investment fell 1.8% in June from the previous month. With volume expected to be low due to a U.S. market holiday on Monday, regional stocks fell slightly. Iron ore miner Vale and steel makers Usiminas and Companhia Siderurgica Nacional led losses on Brazil"s Bovespa as steel-making ingredient prices tumbled to seven-month lows on rising China inventories. Falling oil prices weighed on oil major Petrobras , on course to post its sixth straight session of losses in what could be its longest losing streak in almost two years. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1324.11 0.62 MSCI LatAm 2471.68 0.39 Brazil Bovespa 117641.27 0.61 Mexico IPC 52148.56 0.6 Chile IPSA 4452.14 -0.26 Argentina MerVal 75915.31 1.579 Colombia COLCAP 1322.32 -0.39 Currencies Latest Daily % change Brazil real 5.1720 0.22 Mexico peso 19.8895 0.13 Chile peso 771.89 -0.76 Colombia peso 3797.53 0.00 Peru sol 4.0981 -0.40 Argentina peso 97.9400 -0.06 (interbank) (Reporting by Susan Mathew in Bengaluru; Editing by Matthew Lewis and Dan Grebler) Our Standards: The Thomson Reuters Trust Principles.

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