Mexican peso hits 2022 lows, Latam FX mixed ahead of US election outcome
Brazil continues talks on spending control measures
Chile only considered 25-bps rate cut in Oct, minutes show
Brazil's Itau Unibanco jumps after bumping up credit outlook
MSCI Latam FX index up 0.1%, stocks index down 0.1%
Updated at 3:00 p.m. ET
By Johann M Cherian and Ankika Biswas
Nov 5 (Reuters) -The Mexican peso touched its lowest level since late 2022 in a mixed trade for Latin American currencies on Tuesday, as traders braced for a nail-biting U.S. presidential election outcome that could set the tone for foreign flows into the region.
Mexico's peso MXN=, which is expected to be the most sensitive to the election results, depreciated 0.4%, briefly touching its September 2022 lows and last trading at the 20-to-the-dollar mark.
The currency, along with the Brazilian real BRL=, has been one of the hardest hit in the region, down over 15% so far this year.
"Mexico faces the biggest risks... It's a manufacturing-heavy economy with a deep reliance on the U.S. as an export market. This makes the threat of a global tariff much more disruptive," said Joaquin Kritz Lara, chief economist at Numera Analytics.
On top of concerns around judicial reforms after President Claudia Sheinbaum's Morena party secured large majorities in Congress following June's election, possibility of a second Donald Trump term has further unnerved investors as he seeks to slap a new round of tariffs on Mexican exports.
Analysts expect a likely Trump victory to quickly weaken the peso to more than 21 per U.S. dollar.
Earlier in the day, overnight volatility on the peso MXNONO= had soared to touch its highest since the day of the 2016 vote on Nov. 8.
However, Trump is still neck and neck with Vice President Kamala Harris in opinionpolls, and the winner might not be known for days after voting ends.
Analysts also view Trump's domestic tax policies as more inflationary than Harris', which could lift the greenback and U.S. Treasury yields and consequently diminish foreign inflows into emerging markets broadly.
Meanwhile, Brazil's real climbed 0.7% against the greenback to hit a one-week high, helping the MSCI Latam currencies index .MILA00000CUS erase early losses and trade 0.1% higher.
The country's local government continued high-level discussions towards the announcement of anticipated spending control measures, though it has not disclosed when they will be unveiled.
Investors had sold off the currency despite rate hikes by the local central bank on expectations that the region's largest economy might not meet its fiscal targets for the year.
If fiscal talks prove successful, the Numera Analytics economist sees a strong likelihood of larger gains in the real as speculators could adopt long positions on the currency.
Investors also awaited interest-rate decisions out of Brazil, due on Wednesday, and Peru on Thursday.
Chile's peso CLP= pared some of the day's losses and was last down only 0.1%.
Minutes from the country's October monetary policy decision showed the central bank's only plausible option was lowering the benchmark interest rate by 25 basis points.
However, Chile's main stocks index .SPIPSA was the worst hit among its regional peers, down 1.6% to hit a three-week low.
Colombia's peso COP= climbed 0.2% against the dollar amid steady oil prices, while the Peruvian sol PEN= slipped 0.2%.
Among single stocks, Brazil's Itau Unibanco ITUB4.SA climbed 3.5% after the Latin America's largest private lender bumped up its estimated annual portfolio growth.
Key Latin American stock indexes and currencies:
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1139.93 | 0.89 |
MSCI LatAm .MILA00000PUS | 2129.48 | -0.08 |
Brazil Bovespa .BVSP | 130577.24 | 0.05 |
Mexico IPC .MXX | 50712.31 | -0.33 |
Chile IPSA .SPIPSA | 6524.21 | -1.6 |
Argentina Merval .MERV | 1906534.23 | -0.653 |
Colombia COLCAP .COLCAP | 1356.31 | 0.26 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7523 | 0.68 |
Mexico peso MXN= | 20.1805 | -0.45 |
Chile peso CLP= | 955.4 | -0.13 |
Colombia peso COP= | 4406.78 | 0.16 |
Peru sol PEN= | 3.772 | -0.19 |
Argentina peso (interbank) ARS=RASL | 992.5 | 0.05 |
Argentina peso (parallel) ARSB= | 1115 | 4.93 |
Reporting by Johann M Cherian and Ankika Biswas in Bengaluru; Editing by Alistair Bell
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
