Softer dollar, firmer commodities lift Latam FX


Producer prices in Brazil fall 3.11% in August


J.P. Morgan raises Mexican economic growth forecast


MMG to invest $2 bln at its Peruvian Las Bambas mine

By Bansari Mayur Kamdar

Sept 28 (Reuters) - Currencies in commodity-heavy Latin American countries ticked up on Wednesday, outperforming their emerging market peers, as crude and metal prices firmed and the U.S. dollar slipped from a 20-year peak.

Latin American currencies .MILA000000CUS gained 0.1% as the dollar index =USD , which measures the greenback against a group of major currencies, eased after earlier hitting a fresh 20-year high.

The Brazilian real BRBY BRL= was up 0.5% against the dollar. Data showed Brazil’s producer price index (PPI) fell 3.11% in August, down from 1.13% in the previous month.

The real has advanced nearly 4.2% so far this year despite ongoing volatility as Brazil nears presidential elections on Sunday.

Former Brazilian President Luiz Inacio Lula da Silva has widened his lead over incumbent Jair Bolsonaro to 13 percentage points, a Genial/Quaest poll showed.

"Markets seem to be pricing in a Lula victory already," said Wilson Ferrarezi, economist at TS Lombard.

"The former president has been reinforcing a centrist message to markets, making alliances with market-friendly names and signaling that in his eventual third term in office he will adopt a market-friendly approach on policy," Ferrarezi said.

Brazil's Bovespa index .BVSP climbed 0.2%, while the broader Latam equity index .MILA00000PUS rose 0.3%.

Argentina's Merval index .MERV rose 0.7%. Moody's affirmed Argentina's Ca ratings, adding it "balances Argentina's limited market access, weak governance, and history of recurrent debt restructurings with recent efforts to marshal fiscal and monetary measures to start addressing underlying macroeconomic imbalances in the context of the IMF program that was approved earlier this year."

Crude prices rose on fears of production cuts caused by Hurricane Ian, boosting the currencies of oil exporters Mexico MXN= and Colombia COP= by 0.4% and 1.7% respectively.

J.P. Morgan analysts raised their economic growth forecast for Mexico's third-quarter gross domestic product (GDP), as well as for 2022.

Top copper producer Chile's peso CLP= gained 1.6%, while the Peruvian sol PEN= edged 0.4% higher as copper prices firmed.

Chinese miner MMG Ltd expects to invest $2 billion in the next five years to expand its Las Bambas copper mine in Peru and is eyeing potential acquisitions to further increase production, an executive said on Tuesday.

Elsewhere, Lebanon's finance minister told Reuters the country plans to slash its official exchange rate from the end of October, replacing the 1,507-per-dollar rate adopted 25 years ago with a rate of 15,000 in a step toward unifying numerous exchange rates.

Key Latin American stock indexes and currencies at 14:45 GMT: Stock indexes


Daily % change MSCI Emerging Markets


-1.69 .MSCIEF



0.26 .MILA00000PUS

Brazil Bovespa


0.23 .BVSP

Mexico IPC


0.05 .MXX

Chile IPSA


-0.77 .SPIPSA

Argentina MerVal


0.501 .MERV

Colombia COLCAP


-0.28 .COLCAP



Daily % change Brazil real


0.55 BRBY

Mexico peso


0.31 MXN=D2

Chile peso


1.31 CLP=CL

Colombia peso COP=


1.61 Peru sol


-0.24 PEN=PE

Argentina peso


-0.18 (interbank) ARS=RASL

Argentina peso


1.05 (parallel) ARSB=

Reporting by Bansari Mayur Kamdar in Bengaluru; editing by Jonathan Oatis

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.