S.African rand, Brazil's real firm after cenbank moves



* S.African cenbank holds rates, raises GDP forecast

* Brazil cenbank hikes by 100 bps

* Brazil cenbank tone less hawkish than expected -analyst

* Rising inflation in Mexico spurs rate hike bets

* Turkish lira drops after 100 bps rate cut (Updates prices throughout)

By Susan Mathew

Sept 23 (Reuters) - Central bank moves headlined emerging market currency action on Thursday, with South Africa's rand taking in stride a decision to hold rates, while the Brazilian real firmed after an expected 100 basis points hike overnight.

Turkey's lira TRY= stayed well in the red after a surprise rate cut despite surging inflation.

The South African Reserve Bank left the key interest rate unchanged at a record low of 3.5% as expected, but raised its economic growth forecast for 2021 to 5.3% from 4.2% and said the risks to the short-term inflation outlook were assessed to the upside.

The rand ZAR= hit 14.6881 against the dollar just after the decision, but was soon back at 14.73, up 0.4%.

Meanwhile, in an aggressive battle against inflation, Brazil's central bank raised the benchmark Selic rate by 100 basis points overnight to 6.25% and flagged another one of the same measure next month. But it failed to boost the real BRBY significantly as it was seen as less hawkish than expected.

"We think that the bull case for BRL has been undermined by the weaker China growth outlook, which already has led to a severe deterioration of the terms of trade for Brazil, which may continue," said strategists at Citi.

"On top of this, the central bank is turning more dovish on the margin. An aggressive central bank was one of the core reasons to stick to the BRL long."

But the currency, along with Mexico's peso MXN= , outperformed muted moves by most other Latam peers as sliding commodity prices limited the upside from a weakening dollar.

Mexico's peso MXN= firmed 0.3% after data showing a bigger than expected rise in annual inflation in the first half of September spurred rate hike bets. By mid-month, consumer prices accelerated 0.42% to reach annual inflation of 5.87%, already edging above the 5.59% clocked for August.

Meanwhile, Argentina made a near $1.9 billion payment to the International Monetary Fund on Wednesday as it attempts to revamp the more than $40 billion it still owes. The payment was made with funds Argentina received from the IMF's Special Drawing Rights program.

Latam stocks joined a broader rally in emerging and global equity markets as reassurances from indebted Chinese developer Evergrande 3333.HK about its repayments assuaged some fears of contagion from any default.

Key Latin American stock indexes and currencies at 1906 GMT:

Stock indexes

Latest

Daily %

change MSCI Emerging Markets .MSCIEF

1271.35

0.68 MSCI LatAm .MILA00000PUS

2326.87

-0.31 Brazil Bovespa

.BVSP

113774.14

1.33 Mexico IPC

.MXX

51458.34

0.23 Chile IPSA

.SPIPSA

4395.17

0.25 Argentina MerVal

.MERV

74999.26

0.333 Colombia COLCAP

.COLCAP

1313.52

0.25

Currencies

Latest

Daily %

change Brazil real

BRBY

5.3022

0.01 Mexico peso

MXN=D2

20.0253

0.29 Chile peso

CLP=CL

785.1

0.19 Colombia peso COP=

3831.2

-0.02 Peru sol

PEN=PE

4.099

0.01 Argentina peso (interbank)

98.5300

-0.04 ARS=RASL

Argentina peso (parallel)

182

1.65 ARSB=



Brazil's real, S.African rand after cenbank moves Link



Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Andrea Ricci and Alex Richardson

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.