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EMERGING MARKETS-Mexico peso hits record low on U.S. CPI data; Brazil real rises

Most Latin American
currencies slumped on Friday after U.S. inflation data offered
additional support to expectations of a Federal Reserve rate
hike this year, with the Mexican peso hitting a fresh record low
against the dollar.
    But the Brazilian real strengthened after central bank chief
Ilan Goldfajn told Reuters that financial turbulence stemming
from U.S. policy tightening could deter the bank from quickly
reducing its stock of currency swaps. 
    U.S. consumer prices rose faster than expected in August as
higher housing and healthcare costs more than offset a decline
in gasoline prices. 
    Uncertainty over U.S. monetary policy has been a major
source of volatility ahead of next week's Fed policy meeting.
Higher-yielding emerging market assets have benefited from years
of abundant capital inflows that now seem to be coming to an
end.
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Categories: Uncategorized

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