EMERGING MARKETS-Latin American currencies edge up for third day as dollar recedes

* Mexico’s annual inflation rate drops to 7.8% in Nov * Brazil’s Lula to announce some top names on Friday – assistant * Peru’s president sworn in, his predecessor Castillo arrested * Peru, Chile markets closed for the day (price updates, comments, adds comments) By Susan Mathew and Bansari Mayur Kamdar Dec 8 (Reuters) – Latin American currencies advanced for their third session on Thursday, lifted by a weaker dollar, but Global compensation worries over profits. MSCI’s index of Latin American currencies rose 0.3% against the softer dollar. Funds in Latin America have outperformed their emerging market peers so far this year, adding 14.8% compared to a 5% slide in MSCI’s index for EM money in 2022. The results of the first move mean that real interest rates “good or bad, there’s a lot of difference compared to the quality of real rates we see across developed economies,” said Josh Rubin, portfolio manager at Thornburg Investment Management. . Brazil’s real fell 0.1% against the dollar on Thursday after two straight sessions. Brazil’s president-elect Luiz Inacio Lula da Silva is expected to start announcing some of his members on Friday, the head of his labor union ( PT) said, despite the announcement about the appointment of the leaders. The parliament approved on Wednesday a constitutional amendment to raise the government spending cap, raising it from 145 billion reais ($27.8) for each year, less than 175 billion reais and previously suggested. On Wednesday evening, Brazil’s central bank held its key rate at 13.75%, as expected. Closed ah going to Peru and Chile for a regional vacation. The Peruvian sol fell on Wednesday when President Pedro Castillo and Vice President Dina Boluarte were sworn in. “There is no real leader that makes a lot of points coming in a short period of time and volatility is high to make any solid predictions,” said Juan. Perez, head of marketing at Monex USA. The Mexican peso rose 0.3% after data showed annual consumer prices rose 7.8% in the year to November, falling from the previous month to reach the lowest level since May. Following the data, Capital Economics now expects Mexico’s central bank to deliver a 50-point increase in interest rates this month following the last 25bps to 10.75% in February. The Colombian peso gained 0.1% more. Elsewhere in emerging markets, the Polish zloty pared early gains and fell against the euro. The central bank on Wednesday left the policy rate unchanged at 6.75% for the third month in a row. Governor Adam Glapinski said the rate hike is expected to begin to moderate in March or April but the forecast will remain conservative. Key Latin American Indexes Indexes: Indexes Indexes daily % change index 1081.85 -0.85 -0.69 -0.56 -0.56 % Brazilian real exchange 5.2116 -0.11 Mexican peso 19.6086 0,25 Chilean peso 865 0.00 Colombian peso 4819.34 -0.04 Peru sol 3.8625 0.00 Argentine peso (interbank) 169.8700 -3.22 ; (Editing by Andrea Ricci and Diane Craft)

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