EMERGING MARKETS-Latam FX stuck in tight range, Bovespa pauses after record run

By Sruthi Shankar
Nov 5 (Reuters) – Most Latin American currencies were range
bound on Tuesday, pressured by a strengthening dollar ahead of
U.S. services sector data, but supported by more signs of a
progress in U.S.-China trade talks.
The Brazilian real added 0.2% to trade at 4 per
dollar, while the Mexican and the Colombian pesos
were flat after a recent run-up that took the currencies to
multi-month highs.
The dollar gained against a basket of major currencies, with
economists expecting a U.S. services sector survey due later in
the day to show business sentiment rebounding in October from a
three-year low.
With U.S.-China trade hopes and upbeat U.S. jobs data easing
fears of a global slowdown, an index of Latin American
currencies was holding near three-month highs.
The real got an additional boost from expectations of
new market-friendly reforms. President Jair
Bolsonaro planned to accompany Economy Minister Paulo Guedes on
a visit to Congress to propose new measures to tackle a budget
Yet lawmakers were likely to be skeptical of the
wide-ranging proposals, which government officials said included
reducing tax breaks by 10%, freeing up government funds to pay
down public debt, easing budget rules to lower obligatory
spending and ending job stability for new civil servants.
Sao-Paulo listed shares dipped 0.2% after hitting a
record high the previous session, dragged by shares in state oil
company Petrobras.
Data showed Brazil’s oil production in September fell 2.1%
from a month earlier to 2.927 million barrels per day.
Shares of Itaú Unibanco Holding SA’s rose 2.1% to
the top of the index as the country’s largest private-sector
lender posted a 10.9% gain in third-quarter recurring net
Chile’s markets lagged the most in the region as embattled
President Sebastian Pinera rejected the notion of resigning. He
told the BBC in an interview that he believes he will reach the
end of his term in just over two years despite intense
anti-government protests that are roiling the country.

Key Latin American stock indexes and currencies at 1426 GMT:

Stock indexes Latest Daily %
MSCI Emerging Markets 1070.53 0.56
MSCI LatAm 2815.18 -0.53
Brazil Bovespa 108588.44 -0.18
Mexico IPC – –
Chile IPSA 4761.33 -0.84
Argentina MerVal 37493.55 0.577
Colombia IGBC – –

Currencies Latest Daily %
Brazil real 4.0039 0.18
Mexico peso 19.1790 -0.03
Chile peso 745.5 -1.03
Colombia peso 3315 0.15
Peru sol 3.3328 -0.02
Argentina peso (interbank) 59.6500 0.09

(Reporting by Sruthi Shankar in Bengaluru; Editing by David

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