SAO PAULO: Latin American currencies seesawed on Friday after US job growth posted solid gains in November but wages rose less than expected.
US nonfarm payrolls rose by 228,000 jobs last month amid broad gains in hiring as the distortions from the recent hurricanes faded. Still, average hourly earnings rose 0.2 percent, less than the 0.3 percent consensus estimate.
The figures left investors guessing over the pace of US interest rate hikes in coming months. Consistent signs of strength in the labor market have been followed by mixed figures on inflation, which remains stubbornly below the Federal Reserve's target.
A faster pace of rate hikes could reduce demand for high-yielding assets in emerging markets.
The Mexican peso firmed 0.2 percent, while the Brazilian real was down 0.5 percent. Chilean and Colombian markets were closed due to local holidays.
Also hurting demand for Brazilian assets was uncertainty over President Michel Temer's ability to pass a plan to streamline the social security system and trim government debt.
That uncertainty drove the biggest daily loss on the real in seven months on Thursday, but the currency found some support on Friday after Temer agreed with congressional leaders to a Dec. 18 vote.
Comments
Comments are closed.