Most Latin American currencies firmed on Friday against a dollar rendered softer by U.S. jobs data, but Brazil’s real was on course for a fourth straight losing day, hurt as outflows from the country exacted their toll.
The greenback incurred a loss against a basket of currencies as data showed U.S. job growth in November slowed – suggesting some moderation in economic activity.
Friday’s data comes after an inversion in part of the U.S. Treasury yield curve earlier this week fed investor worries about slowing global growth and a possible U.S. recession on the horizon.
In Latin America, Brazil’s real fell 0.2 percent as outflows took their toll. José Carlos Amado, a trader with brokerage Spinelli, attributed the real’s weakness to outflows on the back of uncertainty overseas and low interest rates.
Analysts and traders broadly expect Brazilian benchmark borrowing costs to be left at the record low of 6.5 percent at the central bank’s Dec. 11-12 policy meeting, wrote Mauricio Oreng, senior Brazil strategist with Rabobank in a note, adding he felt the same way.
The Bovespa stock index rose 0.9 percent led by the energy sector as global oil prices rose 5 percent with Russia and the major Middle East producers in OPEC edging closer to a deal to cut output..
State-controlled oil firm Petroleo Brasileiro SA gained about 3.1 percent, making it among the top gainers on the Bovespa.
State-owned energy utility Centrais Eletricas Brasileiras SA (Eletrobras) led index gains with a 4.6 percent rise.
Brazil’s incoming mines and energy minister said he had not yet made up his mind on the privatization of Eletrobras, proposed under the current administration of President Michel Temer.
Mexico’s peso, more exposed than many of its Latin American peers to global trade, came off its lowest closing level in almost six months clocked on Thursday to firm half a percent.
U.S. President Donald Trump sounded an optimistic note about negotiations with China on trade issues in an early morning tweet.
The Colombian peso climbed 1 percent on Friday, on pace to post its best weekly performance since Aug. 24.
Chile’s peso was half a percent firmer, supported by a significant gain in the price of copper, the country’s main export.