LatAm currencies down on profit-taking after Macron win

SAO PAULO: Latin American currencies weakened on Monday, tracking a decline in the euro on profit-taking following Emmanuel Macron's widely expected victory in France's presidential elections.

Macron's overwhelming win on Sunday briefly pushed the euro to a six-month peak on investor relief over the defeat of nationalist Marine Le Pen, who had threatened to take France out of the European Union.

The currency soon reversed direction, dragging along assets from riskier markets. Currencies of Brazil, Mexico , Chile and Colombia weakened between 0.5 percent and 0.9 percent.

Lower prices of commodities also weighed on Latin American assets, with China-listed iron ore futures extending last week's losses as supply in the country's ports rose to near a 13-year high.

Shares of Vale SA, the world's largest iron ore miner, fell 1.5 percent, subtracting the most points from Brazil's benchmark Bovespa stock index.

Still, rising shares of financial firms helped limit the decline of the index in the wake of higher-than-expected first-quarter profits by insurance company BB Seguridade Participa??es SA.

BB Seguridade, the insurance unit of Banco do Brasil SA , underwrote more dental insurance premiums, which helped to offset lower investment income amid a harsh recession.