ANL 20.85 Decreased By ▼ -1.48 (-6.63%)
ASC 13.54 Decreased By ▼ -1.06 (-7.26%)
ASL 23.00 Decreased By ▼ -0.65 (-2.75%)
BOP 8.20 Decreased By ▼ -0.08 (-0.97%)
BYCO 7.81 Decreased By ▼ -0.34 (-4.17%)
FCCL 17.80 Decreased By ▼ -0.17 (-0.95%)
FFBL 22.75 Decreased By ▼ -0.73 (-3.11%)
FFL 15.50 Decreased By ▼ -0.60 (-3.73%)
FNEL 7.35 Decreased By ▼ -0.62 (-7.78%)
GGGL 17.83 Decreased By ▼ -1.57 (-8.09%)
GGL 40.01 Decreased By ▼ -1.73 (-4.14%)
HUMNL 6.02 Decreased By ▼ -0.32 (-5.05%)
JSCL 18.30 Decreased By ▼ -1.07 (-5.52%)
KAPCO 36.35 Decreased By ▼ -0.83 (-2.23%)
KEL 3.40 Decreased By ▼ -0.08 (-2.3%)
MDTL 2.65 Decreased By ▼ -0.05 (-1.85%)
MLCF 35.10 Increased By ▲ 0.11 (0.31%)
NETSOL 129.40 Decreased By ▼ -9.90 (-7.11%)
PACE 4.75 Decreased By ▼ -0.37 (-7.23%)
PAEL 27.00 Decreased By ▼ -1.35 (-4.76%)
PIBTL 8.85 Decreased By ▼ -0.05 (-0.56%)
POWER 7.45 Increased By ▲ 0.15 (2.05%)
PRL 17.15 Decreased By ▼ -1.15 (-6.28%)
PTC 10.01 Increased By ▲ 0.01 (0.1%)
SILK 1.50 Decreased By ▼ -0.01 (-0.66%)
SNGP 45.00 Decreased By ▼ -0.30 (-0.66%)
TELE 18.89 Decreased By ▼ -1.52 (-7.45%)
TRG 162.70 Decreased By ▼ -6.80 (-4.01%)
UNITY 32.95 Decreased By ▼ -0.10 (-0.3%)
WTL 2.94 Decreased By ▼ -0.02 (-0.68%)
BR100 4,733 Decreased By ▼ -88.48 (-1.84%)
BR30 22,802 Decreased By ▼ -674.49 (-2.87%)
KSE100 45,297 Decreased By ▼ -300.36 (-0.66%)
KSE30 17,811 Decreased By ▼ -218.45 (-1.21%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,432
5824hr
Pakistan Cases
1,232,595
2,35724hr
4.9% positivity
Sindh
453,051
Punjab
425,703
Balochistan
32,812
Islamabad
104,619
KPK
172,210
Markets

Mexican peso outperforms with cental bank decision on tap; Petrobras falls

  • The peso rose 0.6pc to trade at 20.83 to the dollar, while other Latin American and broader EM currencies slipped, pressured by a strong dollar.
Updated 26 Mar 2021

Mexico's peso outperformed emerging market peers on Thursday ahead of a central bank rate decision, while Latin American stocks joined a global decline in equities, with Mexico's IPC index hitting a more than two-week low.

The peso rose 0.6pc to trade at 20.83 to the dollar, while other Latin American and broader EM currencies slipped, pressured by a strong dollar.

A majority of the analysts polled expect Mexico's central bank to keep its key rate steady as inflation ticks up amid the battered economy's recovery from the coronavirus pandemic, while some see a 25 basis point cut.

"Recent higher than expected inflation and volatile global financial conditions, particularly the rise in U.S. Treasury yields, have eliminated the space to provide further monetary stimulus," analysts at Credit Suisse said in a research note.

The decision is due at 1900 GMT. The bank cut rates by 25 bps to 4pc in February, flagging uncertainty over the outlook.

Brazil's benchmark stock index, Bovespa, hit a two week low before cutting losses to trade higher in a volatile session.

Petrobras slid 1.5pc after sources said its chief financial officer and three other top executives decided to leave the state-controlled producer after clashing with the plans of the company's incoming chief executive.

Brazilian President Jair Bolsonaro fired CEO Roberto Castello Branco in February after disagreements over fuel prices and replaced him with a retired general with no oil and gas experience.

Political interference and a tilt towards more populist policies by Bolsonaro, less than 20 months ahead of elections, have roiled financial markets in Brazil recently as investors grow wary.

Sliding oil prices also weighed on the stock.

Brazil's central bank trimmed its economic growth outlook for this year to 3.6pc from 3.8pc on Thursday, citing "above-usual uncertainty" over a recovery amid the COVID-19 pandemic.

Inflation in the country rose to new multi-year highs in the month to mid-March, data showed.

The real, one of the worst performing EM currencies year-to date, fell another 0.3pc.

State power utility Eletrobras was up 1.3pc after the Brazilian government appointed lawyer and economist Rodrigo Limp Nascimento as CEO, to replace Wilson Ferreira, who quit in January over what he called a lack of political support in Congress for privatizing the company.

Chile's peso extended losses to a fourth day as copper prices fell.

Standard & Poor's downgraded Chile's long-term foreign currency credit note a grade lower in the upper medium investment grade category on Wednesday, citing weak fiscal flexibility. The decision also implied that the outlook for the credit note went "stable" from "negative".

Comments

Comments are closed.