RIO DE JANEIRO: Most Latin American currencies weakened on Monday following strong US economic data, but the real was steady as a number of Brazilian companies including Petrobras issued debt abroad, boosting prospects for dollar inflows.
The currencies of Mexico, Chile and Colombia dropped between 0.7 percent and 1.2 percent after reports showed US manufacturing activity picked up in May and construction spending surged in April to a nearly 6-1/2-year high.
The data supported bets that the US Federal Reserve may soon increase interest rates, reducing the allure of higher-yielding but riskier emerging market assets.
The Brazilian real bucked the trend, however, after state-run oil company Petrobras and media group Globo offered to sell dollar-denominated bonds maturing in 100 years and 10 years, respectively.
The deals added to debt issued last week by bank Itau and food processor BRF.
"This is a sign that there is appetite for Brazilian assets and that dollar inflows may remain positive," said Glauber Romano, a trader with Intercam brokerage in Brazil.
Petrobras' decision to issue so-called century bonds marked its return to international debt markets after a massive
corruption scandal emerged last year, cutting off virtually all Latin American issuers from capital markets for months.
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