Latin American currencies fall, Mexican peso hits two-year low
Updated at 1449 GMT
Brazil's WEG slides after Q3 net profit disappoints
South Africa forecasts wider deficits, higher debt
MSCI Latin American stocks index down 1%, currencies off 0.7%
By Johann M Cherian
Oct 30 (Reuters) -Most currencies in Latin America depreciated on Wednesday, with Mexico's peso touching levels not seen in more than two years, as uncertainty around the implications of a domestic judicial overhaul and the Nov. 5 U.S. presidential election.
MSCI's index tracking currencies in Latin America .MILA00000CUS lost 0.7% against the dollar to touch levels last seen in early August.
Mexico's peso MXN= dropped for the fourth straight day, down 0.3% to 20 to the dollar. In the latest development following a recent judicial reform, Mexican Supreme Court Justice Alfredo Gutierrez said he will resign from the court at the end of August 2025.
"The first shock was a few months ago with the elections, when they delivered majorities in both houses of Congress, which means they have access to changing the Constitution," said Eduardo Ordonez Bueso, an emerging markets debt portfolio manager at BankInvest.
"Now people are thinking more in terms of the 'Trump trade' - the idea that (former U.S. President Donald) Trump will most likely win the elections and how he could point his finger at Mexico again."
The pesois among the top underperformers in the region, down over 15% on a year-to-date basis. Prediction markets such as PredictIt are pricing in a win for Trump over Democratic Vice PresidentKamala Harris next week.
The former presidenthas threatened tariffs on the region's second-largest economy, with a 200% surcharge on vehicles imported from Mexico.
Meanwhile, Brazil's real BRL= slipped 0.1% against the dollar to touch a two-month low. The country's finance minister said a constitutional amendment will be needed for the government to strengthen its fiscal framework.
Concerns about fiscal instability have plagued the real, which is down more than 15% so far this year despite interest rate hikes by Brazil's central bank.
Chile's peso CLP= depreciated 0.3%, hitting more than a two-month low. Data showed manufacturing production in the world's largest producer of copper dropped 1.1% in September from a year earlier.
The Colombian peso COP= weakened to levels seen more than a year ago, while Peru's sol PEN= dipped 0.1%.
On the equities front, MSCI's index tracking regional bourses .MILA00000PUS declined 1% to hit more than a two-month low.
Brazil's Bovespa .BVSP equities index was flat, with WEG WEGE3.SA down nearly 5% after the maker of motors reported third-quarter net income below estimates.
The benchmark Mexican stocks index .MXX was flat, with Grupo Financiero Banorte GFNORTEO.MX down 0.5% after reporting third-quarter results.
Elsewhere, South Africa's rand ZAR= reversed early gains and was last flat after its government forecast wider budget deficits and higher debt over the next three years.
For the next fiscal year South Africa's National Treasury now sees a budget deficit of 4.3% of gross domestic product (GDP), higher than the 3.9% economists in a poll predicted.
Key Latin American stock indexes and currencies:
Latin American market prices from Reuters | ||
Equities | Latest | Daily % change |
MSCI Emerging Markets .MSCIEF | 1127.33 | -0.8 |
MSCI LatAm .MILA00000PUS | 2142.87 | -0.99 |
Brazil Bovespa .BVSP | 130761.11 | 0.02 |
Mexico IPC .MXX | 51136.78 | -0.06 |
Chile IPSA .SPIPSA | 6621.6 | -0.76 |
Argentina Merval .MERV | 1862144.74 | 0.894 |
Colombia COLCAP .COLCAP | 1344.18 | 0.36 |
Currencies | Latest | Daily % change |
Brazil real BRL= | 5.7648 | -0.13 |
Mexico peso MXN= | 20.1078 | -0.3 |
Chile peso CLP= | 959.8 | -0.6 |
Colombia peso COP= | 4404 | -0.28 |
Peru sol PEN= | 3.775 | -0.13 |
Argentina peso (interbank) ARS=RASL | 989 | -0.10 |
Argentina peso (parallel) ARSB= | 1160 | 2.93.00 |
Reporting by Johann M Cherian in Bengaluru; Editing by Paul Simao
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.