EMERGING MARKETS-Latam currencies struggle after China move

* Brazil’s real down 0.2 pct, Chilean peso dips 0.3 pct

* Volumes very low across region as year draws to close

By Samantha Pearson and Maria Jose Latorre

SAO PAULO/SANTIAGO, Dec 27 (BestGrowthStock) – Latin American
currencies mostly weakened on Monday after China, one of the
region’s top trading partners, raised interest rates on
Saturday.

Beijing has been trying to find ways to slow its booming
economy which is in danger of overheating. Such measures could
also reduce China’s demand for Latin American exports, such as
Chilean copper and Brazilian soybeans. For details see
[ID:nN27168119].

But trading volumes were very low on Monday as investors
put through their last trades of the year.

The Brazilian real (BRBY: ) was bid 0.18 percent weaker at
1.691 reais per U.S. dollar on the local spot market, but still
near its strongest level in about two weeks.

The Chilean peso (CLP=: ) weakened 0.26 percent to 470.90 per
dollar and Colombia’s currency (COP=STFX: ) was also trading
weaker at 1,964 to the greenback.

“There are very few positions. Yes, the big surprise for
sure is the 25-basis-point hike in China, but it didn’t
generate a huge impact,” said Rodrigo Sarria, a trader at
Celfin Capital in Santiago.

But the Mexican currency (MXN=: ) was flat at 12.3510 per
dollar. Mexico’s economy is less dependent on commodity trade
with China and relies more heavily on the United States.
(Editing by James Dalgleish)

EMERGING MARKETS-Latam currencies struggle after China move