EMERGING MARKETS-LatAm assets gain on softer dollar, firmer commodities

The Colombian central bank lifted its 2027 inflation forecast to 4.3% on Tuesday from 3.7% previously. Colombia's peso COP= advanced 0.5%, extending gains after a 1% jump in the previous session. Separately, Argentina agreed a deal with maritime pilots on Tuesday, clearing the way for shipping to resume after a stoppage that had halted grain exports. Argentina's benchmark .MERV rose 0.5%, and its currency ARS=RASL gained 0.3%. Aug. 5 (Reuters) - Latin American currencies strengthened against a softer dollar on Wednesday, while most equities gained as firmer commodity prices supported risk appetite. MSCI's index tracking Latin American equities .MILA00000PUS rose 0.8%, while the stocks equivalent .MILA00000CUS was little changed. The U.S. dollar index =USD softened 0.2% on hopes of a resolution in the [U.S.-Iran conflict](https://www.reuters.com/world/iran/), which has sent oil prices below $80 per barrel. "The greenback is holding up reasonably well under the circumstances, which may be partly due to the extent of the sell-off seen last week, and the notion that a reasonable degree of war optimism was already priced into the value of the U.S. currency," said Matthew Ryan, head of market strategy at Ebury. Traders are also awaiting U.S. jobs data due on Thursday, with the new Federal Reserve Chair's refrain from forward guidance leaving the FX trade more data-dependent. | | | | | --- | --- | | | Equities | Latest | Daily % change | | MSCI Emerging Markets .MSCIEF | 1688.95 | 2.28 | | MSCI LatAm .MILA00000PUS | 3113.37 | 0.94 | | Brazil Bovespa .BVSP | 179331.86 | 0.81 | | Mexico IPC .MXX | 67065.13 | 0.35 | | Chile IPSA .SPIPSA | 11134.11 | 1.25 | | Argentina MerVal .MERV | 3203214.98 | 0.45 | | Colombia COLCAP .COLCAP | 2368.93 | -0.24 | | | | | | --- | --- | | | Currencies | Latest | Daily % change | | Brazil real BRL= | 5.1101 | 0.35 | | Mexico peso MXN= | 17.2009 | 0.3 | | Chile peso CLP= | 908.18 | 0.26 | | Colombia peso COP= | 3177.13 | 0.53 | | Peru sol PEN= | 3.3835 | 0.29 | | Argentina peso (interbank) ARS=RASL | 1,493.0 | 0.27 | | Argentina peso (parallel) ARSB= | 1,520.0 | 1.62 | Among currencies in the region, the Brazilian real BRL= traded 0.4% higher, while its equities .BVSP gained 0.8%. Overall business activity in the region's largest economy contracted in July, data showed on Wednesday. Investors are now looking at a decision from the central bank later in the day, which is widely expected to deliver a 25-basis-point rate cut. Political developments in the country are also in the spotlight, with the right-wing Senator Flavio Bolsonaro narrowing the gap with President Luiz Inacio Lula da Silva ahead of the October election, a poll showed. The central bank of Mexico is also expected to hold rates steady on Thursday, a Reuters' poll of analysts showed. The Mexican peso MXN= edged 0.3% higher, and its stocks .MXX rose 0.4%, led by a 1% advance in Grupo Mexico GMEXICOB.MX. Meanwhile the Chilean congress approved a sweeping reform package on Tuesday to revive growth in the world's largest copper producer through corporate tax cuts and investment incentives. Chile's peso CLP= added 0.3%, while its equities .SPIPSA climbed 1.3%, tracking firmer copper prices. Minutes of the Chilean central bank's July meeting showed policymakers considered keeping rates unchanged as "the only plausible option".

EMERGING MARKETS-LatAm assets gain on softer dollar, firmer commodities

Colombia and Argentina also see gains

LatAm assets rise as dollar softens and commodities firm

Key Latin American stock indexes and currencies at 14:24 GMT

Brazil, Mexico and Chile move on policy and growth expectations

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