RIO DE JANEIRO: Latin American currencies on Monday started the second half of the year with modest gains, supported by better-than-expected manufacturing data in Europe, Japan, and the United States.
The US manufacturing rebound in June was modest enough not to add to concerns about an imminent tapering of the US Federal Reserve's stimulus program, which for years has supported appetite for emerging market currencies.
Currency gains were curbed, however, by a less cheerful outlook for China, the main destination for Latin America's commodities exports. Chinese official data showed factory growth stalled in the country in June while private data showed it at a nine-month low.
* Mexico's peso gained 0.6 percent to 12.917 per dollar, trimming its year-to-date losses to only have a percentage point.
* Citi analysts expect the Mexican currency to gain further towards the 12.80 level in the next few days, even as market volumes dwindle ahead of US Independence Day holiday on Thursday and key US jobs data on Friday.
* Brazil's real edged higher 0.2 percent to 2.227 per dollar, after seesawing between positive and negative territories earlier.
* Chile's peso firmed 0.8 percent, also bolstered by a recovery in the price of copper, the country's main export product.
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