The Mexican peso rose above one-month highs, ending in 2021 below


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The Mexican peso strengthened on Friday

above one-month highs on the last trading day of the year

less concern about the economic impact of growth

corona virus infections. Latin American Stock Index i

currencies ended the year lower.

The peso rose 0.5% in small holiday trading to gain

for the fourth consecutive session, ending a difficult year

for emerging currencies.

The currency of oil exporters lost 2.4% this year,

but is the best among his Latin American peers

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primarily on the strength of crude oil. Oil prices are set at post

their biggest annual gain since at least 2016, boosted

global economic recovery from the fall of the COVID-19 pandemic and

restraint of the manufacturer.

Brazilian makes, Chilean, Colombian and

All Argentine pesos fell between 7.2% and 22%.

years.

Real fell for the fifth year in a row as a fiscal

concerns about President Jair’s populist policies have grown

Bolsonaro ahead of next year’s election combined with fears that he will

higher local interest rates could affect economic growth.

However, he did better than most of his regional counterparts, except in

Mexican peso.

“The tightening will continue until 2022 – we expect in

at least another 325bps increase by June 2022, “analysts wrote

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TS Lombard in a note last week.

“The recent deterioration of Brazil’s fiscal framework will

likely to lead to a structurally higher neutral level of real rates

in Brazil. ”

MSCI Emerging Markets Currency Index

and stocks were set to fall for others

equal year.

The US Federal Reserve is signaling a tighter monetary policy

next year, growing local inflationary pressures and loss of risk

appetite is expected to increase due to an increase in coronavirus infection

burden the assets of an emerging market.

The broader EM index is on track to close

4.6% less on an annual basis, compared to more than 25% increase

American reference S&P 500.

Salt in Peru rose 0.1% at the end of the year

9.9% lower. The Las Bambas mine of MMG Ltd said on Thursday

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would restart work after reaching an agreement with a

The Peruvian community that blocked the road for a month,

forcing it to stop copper production.

Latin American stock indices and currencies in 1545 GMT:

Stock Indices Latest Daily%

to change

MSCI Emerging Markets 1231.38 0.71

MSCI LatAm 2130.59 0.06

Brazil Bovespa 104822.44 0.69

Mexico IPC 53168.98 -0.01

Chile IPSA 4300.12 1.17

Argentina MerVal 83 500.11 -0.603

Colombia COLCAP 1410.97 -0.34

Currencies Latest daily%

to change

Brazilian Real 5.5703 –

Weight Mexico 20.4280 0.15

Weight Chile 851.5 –

Colombia weight 4065.41 –

Peru sol 3.9769 0.14

Argentine Peso 102.7300 –

(interbank)

(Reporting by Shashank Nayar in Bengaluru; editing by Grant

McCool)

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