* Brazilian consumer inflation jumps first time in four
years
* Mexican peso drops most in one month
By Shashank Nayar
April 27 (Reuters) - Most Latin American currencies fell on
Tuesday on worries of rising coronavirus infections and ahead of
a U.S. Federal Reserve meeting, while the Chilean peso jumped as
copper prices rose near to levels seen a decade ago.
The currency of the world's top copper producer, Chile
, gained 0.7% to 700 and was trading nearly 1% away from
its highest point this year.
Copper prices climbed on Tuesday towards the record above
$10,000 a tonne seen a decade ago, as worries about supply
disruptions in Chile due to strikes and robust demand reinforced
expectations of shortages this year.
Investors held off large bets ahead of a Federal Reserve
policy decision on Wednesday, where the bank is widely expected
to maintain its dovish stance and downplay talks of tightening
policy.
The real reversed early gains to trade nearly flat as
risks arising from rising coronavirus infections and vaccination
worries outweighed a rising inflation outlook and sufficient
banking system liquidity.
Brazilian consumer inflation rose above 6% in the month to
mid-April for the first time in more than four years, statistics
agency IBGE said, once again driven by rising transportation
costs.
The Brazilian health regulator Anvisa rejected importing the
Russian-made Sputnik V COVID-19 vaccine requested by state
governors battling a deadly second wave of the virus that is
battering Latin America's largest nation.
"Weakness in the BRL is led by fear that if the current
spike in virus infections would be sustained for longer, in
addition the vaccination drive is not helping much as Brazil has
been struggling to procure vaccines for a faster vaccination
program which is the need,” said Mauricio Une, senior economist
at Rabobank.
A rising second wave of coronavirus infections and an acute
shortfall of vaccinations has kept sentiment subdued towards
Latin American currencies and stocks, amid rising death tolls
and increased hospitalizations.
Mexico's peso dropped 0.8% and was set for its
biggest single-day drop in a month. The currency extended losses
from the previous session after data showed the country's
economy shrank more than expected in February, mainly driven by
weakness in the manufacturing and service sectors.
Most other Latin American currencies including the Argentine
and Colombian peso dropped 0.1% and 0.3%, while
the Peruvian sol traded flat.
MSCI's index of Latin American stocks gained
0.1%, while currencies dropped 0.1%.
Key Latin American stock indexes and currencies:
Latest Daily % change
MSCI Emerging Markets 1362.00 0.1
MSCI LatAm 2432.69 0.12
Brazil Bovespa 120411.83 -0.15
Mexico IPC 49286.22 0.74
Chile IPSA 4849.50 -0.32
Argentina MerVal 48520.98 1.23
Colombia COLCAP 1291.63 0.39 Currencies Latest Daily % change
Brazil real 5.4432 0.08
Mexico peso 19.9610 -0.56
Chile peso 700 0.67
Colombia peso 3705.68 -0.34
Peru sol 3.8377 0.00
Argentina peso 93.3300 -0.05
(interbank)
(Reporting by Shashank Nayar in Bengaluru
Editing by Alistair Bell)
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