A.Latina Currencies Run With Losses After New US Economy Data

By Froilan Romero

SANTIAGO, Feb 16 (Reuters) – Latin American currencies and most stock markets posted losses on Thursday, amid a global rally in the dollar after new data from the U.S. economy that would be an endorsement for the Federal Reserve continues to tighten monetary policy. policy.

* The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, once again demonstrating the resilience of the economy despite the tightening of monetary policy.

* A second report from the Labor Department showed an acceleration in monthly producer prices in January. The producer price index for final demand rose 0.7% last month, after falling 0.2% in December.

* The US currency rose about 0.3% against a basket of six major currencies that make up the dollar index.

* The Colombian peso led the losses for the second straight day and depreciated 1.46% to 4,993.50 units to the dollar, its lowest level in three months, in a combination of the global trend, the economic growth data below expectations in 2022 released the previous day and uncertainty due to the fiscal impact of the local reform program promoted by the government, the agents said.

* “There are three perfect storms that bring the dollar close to 5,000 pesos,” said Sergio Olarte, Scotiabank’s chief economist for Colombia.

* The Mexican peso was trading at 18.6530 units, down 0.43% from the Reuters benchmark price on Wednesday. Previously, it had come ahead 0.17% to 18.5438 to the dollar.

* “The Mexican currency was affected by the publication of key indicators for the Fed, which reflect that the conditions are in place for it to continue raising its benchmark interest rate,” said Janneth Quiroz, deputy director of analysis at Monex Grupo Financiero.

* The main S&P/BMV IPC stock index, which includes the 35 most liquid companies in the Mexican market, fell 0.14% to 53,348.24 units.

* The Brazilian real depreciated 0.65% to 5.2538 units to the dollar, while the Bovespa index on the B3 stock exchange in Sao Paulo fell 0.81% to 108,747.50 points.

* Brazil’s economic activity grew 2.9% in 2022, according to a Central Bank index released on Thursday, buoyed by strength in the services sector and defying initial forecasts of a mild expansion.

* In Argentina, the peso fell 0.22% to 192.80 on the dollar in central bank-regulated depreciation, while the Merval stock index reversed early gains and fell 0.25% to 254 374.09 units.

* The Chilean peso lost 0.63% and traded at 799.20/799.50 to the dollar. Meanwhile, the flagship index of the Santiago Stock Exchange, the IPSA, rose a timid 0.09% to 5,409.93 units.

* “Markets move in line with the changing US rates landscape, leading to high volatility and ever-changing investor sentiment,” one trader said.

* The Peruvian currency, the sol, depreciated 0.16% to 3.871/3.875 units per dollar. At the same time, the benchmark index of the Lima Stock Exchange lost 0.17% to 571.72 points.

(Reporting by Froilán Romero. Additional reporting by Nelson Bocanegra in Bogotá, Hernán Nessi, Jorge Otaola and Walter Bianchi in Buenos Aires, Editing by Manuel Farías)