AIRLINK 196.38 Increased By ▲ 4.54 (2.37%)
BOP 10.11 Increased By ▲ 0.24 (2.43%)
CNERGY 7.75 Increased By ▲ 0.08 (1.04%)
FCCL 38.10 Increased By ▲ 0.24 (0.63%)
FFL 15.74 Decreased By ▼ -0.02 (-0.13%)
FLYNG 24.54 Decreased By ▼ -0.77 (-3.04%)
HUBC 130.38 Increased By ▲ 0.21 (0.16%)
HUMNL 13.73 Increased By ▲ 0.14 (1.03%)
KEL 4.60 Decreased By ▼ -0.07 (-1.5%)
KOSM 6.19 Decreased By ▼ -0.02 (-0.32%)
MLCF 44.85 Increased By ▲ 0.56 (1.26%)
OGDC 206.51 Decreased By ▼ -0.36 (-0.17%)
PACE 6.58 Increased By ▲ 0.02 (0.3%)
PAEL 39.77 Decreased By ▼ -0.78 (-1.92%)
PIAHCLA 17.20 Decreased By ▼ -0.39 (-2.22%)
PIBTL 7.99 Decreased By ▼ -0.08 (-0.99%)
POWER 9.20 Decreased By ▼ -0.04 (-0.43%)
PPL 178.91 Increased By ▲ 0.35 (0.2%)
PRL 38.93 Decreased By ▼ -0.15 (-0.38%)
PTC 24.31 Increased By ▲ 0.17 (0.7%)
SEARL 109.27 Increased By ▲ 1.42 (1.32%)
SILK 1.00 Increased By ▲ 0.03 (3.09%)
SSGC 37.75 Decreased By ▼ -1.36 (-3.48%)
SYM 18.83 Decreased By ▼ -0.29 (-1.52%)
TELE 8.53 Decreased By ▼ -0.07 (-0.81%)
TPLP 12.14 Decreased By ▼ -0.23 (-1.86%)
TRG 64.76 Decreased By ▼ -1.25 (-1.89%)
WAVESAPP 12.11 Decreased By ▼ -0.67 (-5.24%)
WTL 1.64 Decreased By ▼ -0.06 (-3.53%)
YOUW 3.87 Decreased By ▼ -0.08 (-2.03%)
BR100 12,000 Increased By 69.2 (0.58%)
BR30 35,548 Decreased By -112 (-0.31%)
KSE100 114,256 Increased By 1049.3 (0.93%)
KSE30 35,870 Increased By 304.3 (0.86%)

Latin American currencies firmed on Monday, with the Mexican peso hitting its highest in more than two weeks, boosted by the European Central Bank president's dovish comments.

ECB President Mario Draghi said the bank will need to ease policy again, possibly through new rate cuts or asset purchases, if inflation doesn't head back to its target.

"EM assets have bounced on the dovish ECB," said strategists at Morgan Stanley.

"Perhaps markets believe that the ECB moves will reactivate the euro-funded carry trade, and that this would be enough for EM to keep strengthening versus the dollar, despite a weak euro-dollar pair," they said, cautioning however that any additional dollar strength could weigh on EM currencies.

At 1353 GMT, the dollar was steady, bracing for the outcome on Wednesday of the US Federal Reserve's meeting, when analysts increasingly expect the bank to signal that a rate cut may be in the offing.

Brazil's real jumped 1pc, extending last session's gains, while Mexico's peso climbed 0.5pc to its highest since May 30 - with the ECB boost helping them rise amid shaky local political scenes.

In Mexico, President Andres Manuel Lopez Obrador proposed holding a recall referendum on his presidency on March 21, 2021, if Congress cannot agree to a constitutional change permitting the vote during mid-term legislative elections.

Meanwhile, in Brazil President Jair Bolsonaro on Monday appointed Gustavo Montezano as the head of development bank BNDES, replacing Joaquim Levy who resigned on Sunday after Bolsonaro publicly criticized him.

Analysts at brokerage XP Investimentos said on Monday that whatever the merits of Levy's exit, it does not reflect well on the government or its efforts to paint Brazil as an attractive and politically stable destination for foreign capital.

Sao Paulo-traded stocks rose 1pc on broad-based gains, in line with other emerging market peers and world stocks.

But, local listed shares of airline Azul SA lost 0.7pc. Bolsonaro on Monday signed a bill into law allowing foreign airlines to operate domestic flights in Brazil, a move that could usher in new competition or lead foreign carriers to buy up the local players.

Petrochemical company Braskem SA lost 0.8pc controlling shareholder Odebrecht SA filed on Monday for bankruptcy protection.

Copyright Reuters, 2019

Comments

Comments are closed.