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Chile’s peso rose the most among
major Latin American currencies on Wednesday as prices of copper
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regained footing on hopes that top consumer China’s easing of
COVID-19 policies will lift demand, while Peru’s sol fell after
a partial Cabinet reshuffle.
The peso gained 0.7% against the dollar,
Tracking its best one-day percentage gain in more than a week as
Prices of the red metal moved higher, shrugging off worries that
A recent surge in coronavirus infections in China is reducing
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consumption in the short term.
Chile, which is the world’s biggest producer of copper,
relies heavily on demand from China, where its zero-COVID policy
disrupted economic activity and pulled the red metal from a
record high. The Chilean currency is on track for its second
straight yearly decline, down over 3%.
Latin American stocks rose 0.1%, in line
with broader emerging markets.
Still, higher exposure to commodities have helped certain
Emerging markets more than others, with Latin American regions
set to outperform broader EMs in 2022. Latam stocks
are set to end the year flat against a near-23%
plunge in the MSCI’s broader EM index.
Mexico’s peso rose 0.4%, while the Colombian peso
added 0.1% as prices of oil gained.
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In Peru, President Dina Boluarte named lawyer Alberto
Otarola as the new prime minister as part of a reshuffling of
her Cabinet. The sol fell 0.4%, while stocks in Lima
shed 0.3%.
Boluarte was vice president until she replaced
then-President Pedro Castillo earlier this month, who was
removed from office and then detained after illegally trying to
dissolve Congress.
Peru on Tuesday gave Congress the provisional green light to
bring forward a general election to the end of 2023, amid deadly
protests over the impeachment of Castillo.
“The approval is positive in the sense that it caters to
growing pressures from the population and allows time for
potential political reform changes that could limit the common
stalemate between congress and executive branches,” Citi
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strategists wrote in a client note.
Brazil’s real edged 0.1% lower. Data showed
the country’s federal tax revenue totaled 172.038 billion reais
($33.29 billion) in November, a 3.25% growth in real terms over
the same month last year.
Sao Paulo stocks rose 0.1%, with a 20% jump in
Brazilian reinsurer IRB Brasil Resseguros SA leading
gains after it posted a monthly profit in October.
Key Latin American stock indexes and currencies at 1526 GMT:
Stock indexes Latest Daily %
change
MSCI Emerging Markets 952.40 0.14
MSCI LatAm 2136.27 0.25
Brazil Bovespa 106887.01 0.02
Mexico IPC 50450.13 0.62
Chile IPSA 5308.92 0.4
Argentina MerVal 176274.60 2.286
ColombiaCOLCAP 1231.15 0.29
Currencies Latest Daily %
change
Brazil real 5.2040 -0.02
Mexico peso 19.7126 0.15
Chile peso 878.3 0.82
Colombia peso 4755.78 0.13
Peru sol 3.8155 -0.34
Argentina peso (interbank) 174.2400 -0.18
Argentina peso (parallel) 320 1.88
(Reporting by Shreyashi Sanyal in Bengaluru; editing by
Jonathan Oatis)
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