Equities in Brazil .BVSP slipped 0.2%, weighed by losses in miner Vale VALE3.SA that slipped 2.7%, as iron ore prices slid for a seventh straight session on weak Chinese demand.
Investors are awaiting Brazil's central bank decision on Wednesday, with economists polled by Reuters expecting a fourth consecutive interest-rate cut. The Brazilian real BRL= was subdued.
Manufacturing activity in the region's largest economy contracted in July, data showed on Monday.
Political developments are also in focus in Latin America's largest economy, after a poll showed right-wing Senator Flavio Bolsonaro narrowing the gap with President Luiz Inacio Lula da Silva ahead of the October presidential election.
An interest-rate decision from Mexico's central bank is also expected later in the week. The Mexican peso MXN= firmed, while its stocks .MXX declined 0.5%.
In Chile, economic activity returned to growth in June, marking the first year-on-year increase in six months on stronger mining, trade and services activity.
Chile's benchmark .SPIPSA edged 0.1% lower, while its currency CLP= gained 0.7%.
Argentina's benchmark .MERV and Colombian equities .COLCAP dropped 0.5% and 0.4%, respectively.
Peru's sol PEN= firmed, hitting its strongest level in more than a month.
Latin American currencies and equities mixed
MSCI's index tracking Latin American currencies .MILA00000CUS was muted, but touched a record high earlier in the session. Most currencies were mixed against the dollar.
A weaker dollar and relatively high interest rates have attracted carry-trade inflows into the region's currencies, helping them outperform broader emerging-market peers so far this year.
Oil prices fell 4.7% after U.S. President Donald Trump refrained from attacks on Iran over the weekend, and said talks would take place on Monday, though Iran denied plans for any meetings.
Equities in the resource-rich region slipped as weaker commodity prices weighed on sentiment. The gauge tracking the region's equities .MILA00000PUS edged 0.3% lower.
Key Latin American stock indexes and currencies
Latin American market prices from Reuters
Equities
Latest
Daily % change
MSCI Emerging Markets .MSCIEF
1651.22
-0.88
MSCI LatAm .MILA00000PUS
3081.52
-0.28
Brazil Bovespa .BVSP
177680.45
-0.18
Mexico IPC .MXX
66585.49
-0.53
Chile IPSA .SPIPSA
11008.86
-0.07
Argentina Merval .MERV
3276363.14
-0.455
Colombia COLCAP .COLCAP
2381.76
-0.43
Currencies
Latest
Daily % change
Brazil real BRL=
5.0861
-0.21
Mexico peso MXN=
17.3239
0.02
Chile peso CLP=
924.27
0.67
Colombia peso COP=
3228.41
-2.43
Peru sol PEN=
3.3877
0.01
Argentina peso (interbank) ARS=RASL
1494
-0.54
Argentina peso (parallel) ARSB=
1535
1.63
Colombia peso falls after reserve program surprise
Aug. 3 (Reuters) - Colombia's peso slid more than 2% and was headed for its steepest decline in over a year on Monday, after the nation's central bank surprised markets with an announcement to build up its international reserves.
The Colombian central bank unexpectedly held rates on Friday and announced a programme to buy up to $4 billion to boost international reserves. The first auction is being held on Monday with a quota of up to $400 million.
"The reserve-accumulation programme was arguably the meeting's biggest surprise," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.
"The design makes clear that the objective is not to target a particular exchange-rate level, but rather to rebuild external buffers while taking advantage of periods of COP strength."
The peso COP= dropped 2.4% but remains the strongest performing currency in the region so far this year, buoyed by hopes that business-friendly policies from the incoming right-wing government under President-elect Abelardo de la Espriella could help fix the country's deteriorating public finances and rebuild confidence in the economy.
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