Chilean peso rises after rate hike, Latam peers return to gains



* Chilean central bank raises rates to 9.0%, sees more hikes

* Brazil's Vale launches VC initiative to invest in startups

* Colombian peso rises with oil prices, Brazilian real flat

By Shreyashi Sanyal

June 8 (Reuters) - Chile's peso rose on Wednesday after its central bank raised interest rates overnight and signaled more increases, while other Latin American currencies returned to gains following a shaky start to the week amid hopes of demand recovery in China.

The peso CLP= strengthened 0.5% against the dollar after Chile's central bank raised its benchmark interest rate CLINTR=ECI by 75 basis points (bps) to 9.0%, and suggested more increases were coming as it battles rising inflation.

"The bank considered that the local financial market has performed more favorably than its external peers, and the economy has been receding at a slower-than-expected pace; however, headline inflation has continued to rise," Credit Suisse analysts wrote in a client note.

"We think that this likely puts the floor on the policy rate at 9.5%, assuming the minimum two adjustments of 25bps each."

Santiago stocks .SPIPSA fell 1.2%, leading declines among Latin American peers.

The central bank also raised its economic forecast, saying the Chilean economy would expand between 1.5% and 2.25% this year, after last year's solid recovery from the coronavirus pandemic.

Most Latin American markets drew comfort from gains in Chinese shares .CSI300 , which ended at their highest level in two months on hopes of a recovery in demand on loosening COVID-19 curbs.

Reuters reported that China has widened the gap on the United States in trade terms in large swathes of Latin America since U.S. President Joe Biden came into office early last year, according to data, underscoring how Washington is being pushed onto the back foot in the region.

The resource-rich South and Central Americas export a number of products to China ranging from industrial metals, oil and agricultural goods.

The Colombian peso COP= gained 0.4%, rising along with higher oil prices, while Peru's sol PEN= added 0.6%.

Brazil's real BRBY BRL struggled for direction in volatile trading. The currency touched two-week lows in the previous session as government proposed tax cuts aimed at curbing soaring diesel and gas prices raised worries about the country's fiscal health.

Brazil's government is mulling measures to ensure a plan to slash a state fuel tax is reflected in prices at the pump, two sources close to the matter told Reuters.

Sao Paulo stocks .BVSP shed 0.3%, with Vale SA VALE3.SA dragging.

The miner fell 1.2%. It said it was launching a venture capital initiative called Vale Ventures to invest $100 million in mining startups around the world.

Key Latin American stock indexes and currencies at 1435 GMT:

Stock indexes

Latest Daily %

change MSCI Emerging Markets .MSCIEF

1074.09

1.23 MSCI LatAm .MILA00000PUS

2373.94

-0.22 Brazil Bovespa

.BVSP

109580.12

-0.44 Mexico IPC

.MXX

50131.18

-0.02 Chile IPSA

.SPIPSA

5294.51

-1.2 Argentina MerVal

.MERV

90876.02 -0.068 Colombia COLCAP

.COLCAP

1570.61

-1.04

Currencies

Latest Daily %

change Brazil real

BRBY

4.8747

-0.06 Mexico peso

MXN=D2

19.6183

-0.20 Chile peso

CLP=CL

821.3

0.33 Colombia peso COP=

3769.6

0.21 Peru sol

PEN=PE

3.7287

0.27 Argentina peso (interbank)

121.4500

-0.13 ARS=RASL

Argentina peso (parallel) ARSB=

204

0.98


Reporting by Shreyashi Sanyal in Bengaluru Editing by Mark Potter

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.