Latin American currencies edge up

Latin American currencies largely edged up against the US dollar on Friday, easing the pace of a four-week rally, as investors showed caution while Greece completes debt talks with private investors and the United States grew less than expected.
Mexico's peso firmed 0.23 percent to 12.9666 to the dollar in spot market trading. Brazil's real firmed 0.02 percent to 1.7427 to the dollar. Chile's peso was firmed 0.29 percent to 485.00. In contrast, Colombia's peso eased about 0.2 percent to 1,808.00. "After the recent rally we're waiting on the Greece negotiations," said Luciano Rostango, chief currency strategist at the Sao Paulo unit of WestLB a German bank. Greece and non-government holders of its sovereign bonds are in talks in an effort to reduce the amount the country owes and cut its debt to gross domestic product ratio to about 120 percent.
Easing concern about European debt has seen Latin American currencies surge this month. The Mexican peso, Colombian peso, Chilean peso and Brazilian real have all gained about 7 percent this year, and make up four of the eight biggest gainers of the 152 currencies tracked against the dollar by Thomson Reuters.
The peso is likely to trade between 12.80 and 13 to the dollar today. If the peso breaks through support levels at 13 to the dollar the exchange rate could weaken to 13.05 to 13.08, Alejandro Padilla of Banorte IXE in Mexico City said. Elsewhere in Latin America, Peru's sol firmed 0.08 percent to 2.6890 to the dollar.