Latam currencies knocked down by firmer dollar, bleak China data



* China services sector activity hit hard by coronavirus surge

* Chilean peso, Peruvian sol down as copper prices fall

* Brazil's Vale to sell manganese, iron ore assets to J&F

* Dollar near two-year highs on hawkish Fed comments

By Shreyashi Sanyal

April 6 (Reuters) - Latin American currencies fell on Wednesday against a firming dollar on bets of more aggressive U.S. Federal Reserve policy, while weak data from China spurred fears of slowing economic growth.

Brazil's real BRBY BRL= fell 1%, while the broader MSCI Latin American currencies gauge .MILA00000CUS slipped 0.8%.

A private survey showed activity in China's services sector contracted at the sharpest pace in two years in March as one of Latin America's biggest trading partners struggles to contain a surge in coronavirus cases.

Recent restrictions on mobility in Shanghai also sparked concerns of demand as China remains of the top consumers of industrial metals and raw materials from central and south American nations.

Currencies of the two biggest copper producing countries, Chile CLP= and Peru PEN= , fell after prices of the red metal slipped amid fears of slowing demand from China.

Ramping up pressure on emerging market currencies was the dollar =USD , which hovered near two-year highs.

Fed Governor Lael Brainard said she expects a combination of interest rate hikes and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later this year, with further tightening to follow as needed.

Minutes from the Fed's policy meeting in March is set to be released later in the day.

The United States and its allies prepared new sanctions on Moscow over civilian killings in Ukraine, on top of harsh Western sanctions already in place.

Latin American markets have outperformed the broader developing world in the wake of the Ukraine crisis supported by monetary tightening cycles and a rally in commodity prices, but analysts are now questioning the flip side of the phenomenon.

"Latin America has few direct economic and financial linkages with Russia and Ukraine," said Gersan Zurita, a senior vice president at Moody's Investors Service.

"However, the acceleration in energy prices and new round of supply shocks is constraining access to key food and industrial commodities, resulting in higher inflation and the likelihood of continued monetary policy tightening."

This may bode well for currencies in the region but could come at the cost of curbing economic growth.

The MSCI's index for Latin American stocks .MIEM00000PUS fell 1.4%, with Brazil's Bovespa .BVSP down 1.1%.

Brazil's Vale SA VALE3.SA rose 1.3% as it agreed to sell its manganese and iron ore mines in central Brazil, with an enterprise value of about $1.2 billion, to holding company J&F Investimentos.

Key Latin American stock indexes and currencies at 1412 GMT:

Stock indexes

Latest Daily %

change MSCI Emerging Markets .MSCIEF

1140.43

-1.41 MSCI LatAm .MILA00000PUS

2651.31

-1.39 Brazil Bovespa

.BVSP

117611.44

-1.07 Mexico IPC

.MXX

55703.43

0.28 Chile IPSA

.SPIPSA

4894.93

-0.69 Argentina MerVal

.MERV

0.00

0 Colombia COLCAP

.COLCAP

1639.95

0.37

Currencies

Latest Daily %

change Brazil real

BRBY

4.7023

-0.95 Mexico peso

MXN=D2

20.0462

-0.27 Chile peso

CLP=CL

793

-0.77 Colombia peso COP=

3751.82

-0.43 Peru sol

PEN=PE

3.696

0.00 Argentina peso (interbank) ARS=RASL

111.8300

-0.11

Argentina peso (parallel) ARSB=

193

3.11


Reporting by Shreyashi Sanyal in Bengaluru Editing by Marguerita Choy

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.