EMERGING MARKETS-Latam FX slips on rising COVID conditions, Chilean peso lifted by copper

    Mexico marks very top each day an infection price since Jan
    Copper prices upward thrust on earnings optimism

    By Ambar Warrick
    July 22 (Reuters) - Most Latin American currencies fell on
Thursday as rising COVID-19 conditions in Brazil and Mexico spurred
warning, while Chile's peso tracked snug good points in copper prices.
    Mexico's peso fell 0.1%. A upward thrust in shopper prices
by procedure of the first half of July did little to spur speculation
over every other price of interest hike by the central monetary institution, with
COVID-19 conditions rising at an exponential price in the nation.

    "With the coverage price already at 4.25%, peaceful indispensable
slack in the economic system, a severe credit rating crunch, and comparatively
effectively anchored peso, there would possibly be likely no want at this juncture to
push the coverage price grand increased, as prolonged because the FOMC maintains
a extremely accommodative stance and dovish steering," Goldman
Sachs analysts wrote in a gift.
    Mexico on Wednesday posted its ideal jump in COVID-19
conditions since early-January.
    Brazil's trusty shed 0.2%, as infections rose by more
than 54,000 on Wednesday. Extra infections have a tendency to motive
renewed lockdown measures, and extra abate increase in Latam's
ideal economic system.
    Chile's peso led early good points, rising 0.4% as copper
prices rose on optimism over a solid second-quarter earnings
    Optimism over company earnings additionally helped customers look
previous fresh concerns over economic increase, with broader emerging
markets staging a solid recovery.
    Trusty haven such because the buck and the Japanese yen
 additionally got here off peaks hit this week, while the European
Central Monetary institution vowed to abet coverage dovish for even longer to
shore up economic increase.
    But Latin American (Latam) resources lagged their visitors as a end result of
rising COVID-19 conditions in important economies. Currencies of oil
exporting majors Mexico and Colombia additionally largely passed over
good points in indecent prices. 
    The Pan American Neatly being Group said the Americas is
facing a deadly illness of the unvaccinated, because it warned countries
with low inoculation rates are seeing will increase in COVID-19 and
repeated a call for vaccine donations.
    Losses in Colombia's peso were considerably mitigated by rankings
company Fitch announcing the fresh tax reform invoice will abet stabilize
the nation's strained public budget.
    But the company said more fiscal motion used to be required to bring
down govt debt levels.
    Latam shares moved little in early alternate. 
    Key Latin American stock indexes and currencies:
                              Most widespread    Day-to-day % alternate
 MSCI Emerging Markets         1326.45             1.09
 MSCI LatAm                    2531.09             0.64
 Brazil Bovespa              125577.08            -0.28
 Mexico IPC                   50107.53             0.14
 Chile IPSA                    4282.96             0.18
 Argentina MerVal                    -                -
 Colombia COLCAP               1253.98             0.26 Currencies             Most widespread    Day-to-day % alternate
 Brazil trusty                    5.2006            -0.17
 Mexico peso                   20.1550            -0.12
 Chile peso                     749.56             0.35
 Colombia peso                  3858.3            -0.19
 Peru sol                        3.946             0.00
 Argentina peso                96.3900            -0.02

 (Reporting by Ambar Warrick, Modifying by William Maclean)

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