EMERGING MARKETS-Latam currencies dip; Chilean peso strengthens on higher copper prices

Shreyashi Sanyal

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* Chilean peso breaks 5-day losing streak

* U.S.-China trade rhetoric improves

* Mexican peso eases after GDP data

Nov 25 (Reuters) - The Chilean peso firmed more than 1% on the back of higher copper prices on Monday, while other Latin American currencies dipped against a slightly stronger dollar as a report sparked hopes of a trade truce between the United States and China. Chile's peso rose for the first time in six sessions as a sharp decline in copper inventory in London Metal Exchange (LME) warehouses boosted copper prices. The currency has been battered in the past month by prolonged anti-government unrest, having lost nearly 10% since Oct. 21 when the protesters turned to vandalism. MSCI's index of Latin American currencies dipped 0.3% after rising nearly half a percent in the previous session. A Chinese state-backed newspaper said on Monday that Beijing and Washington were "very close" to an initial trade agreement, adding to optimism sparked by comments over the weekend by a U.S. trade adviser that a deal was still possible this year. "There is a little bit of cautious optimism on the trade front," said Edward Glossop, Latin America economist at Capital Economics. "But it also is the case of us not seeing a deal as early as some had expected." The Mexican peso weakened slightly after revised data showed the country's economy had entered a mild recession during the first half of 2019 and was flat in the third quarter.

Investors are also tracking the Colombian peso, as hundreds of people marched in the capital on Sunday in honor of a gravely injured teenage demonstrator, on the fourth day of protests. "The one currency everyone is waiting for today is the Colombian peso given how the protests over the weekend seemed to have escalated," Glossop said. Brazil's real eased 0.3% after central bank figures showed the country's balance of payments position with the rest of the world deteriorated in October, as the current account deficit widened and investment inflows from abroad failed to cover the shortfall.

Key Latin American stock indexes and currencies at 1420 GMT:

Stock indexes Latest Daily % changeMSCI Emerging Markets 1051.95 0.32MSCI LatAm 2698.26 -0.52Brazil Bovespa 108492. -0.18


Mexico IPC - -Chile SPIPSA 4719.71 -0.22Argentina MerVal - -Colombia COLCAP - -Currencies Latest Daily % changeBrazil real 4.2083 -0.38Mexico peso 19.4031 -0.16Chile peso 788.4 1.31Colombia peso 3417.8 0.14Peru sol 3.388 0.00Argentina peso (interbank) 59.7700 0.07

(Reporting by Shreyashi Sanyal in Bengaluru; Editing by Steve Orlofsky)