EMERGING MARKETS-Mexican, Colombian pesos lead Latam FX declines as oil prices slide

       * Brazil inflation ticks higher - central bank survey
    * Mexican economic recovery slows in August
    * Chilean peso reverses losses, rises for seventh day

 (Updates prices throughout, adds comments)
    By Shreyashi Sanyal
    Oct 26 (Reuters) - The pesos of Mexico and Colombia fell the
most among Latin American currencies on Monday after oil prices
slid and the dollar strengthened, while Chile's peso reversed
early declines to rise for the seventh straight day.
    Mexico's peso slipped 0.4%, while Colombia's peso
 dropped 0.6% as crude prices fell more than 3% as
coronavirus cases continued to surge in the United States and
Europe. A rise in the safe-have dollar also weighed on
Latin American currencies.
    Separately, data showed Mexico's economy grew more slowly
than expected in August from July as a recovery from the
coronavirus pandemic lost steam.
    Emerging markets braced for the outcome of the Nov. 3 U.S.
presidential elections, with the Mexican peso being particularly
vulnerable to volatile moves.
    "When it comes to geopolitics, two main sub-areas stand out
(for Mexico): immigration and energy policy," said Gabriela
Soni, emerging markets strategist Mexico at UBS.
    "Mexico would likely enjoy a better relationship on the
former under Biden, while Trump is unlikely to protest against
Lopez Obrador's emphasis on fossil fuels."
    The Chilean peso rose 0.2% after falling earlier in
the day on growing uncertainty following a landmark vote to
replace the country's Pinochet-era constitution on Sunday night
with a new charter drafted by its citizens.
    Analysts feared the rewriting of the constitution may cause
the central bank to adopt a more dovish stance in the medium
    "The road ahead is full of uncertainties and rewriting the
constitution will be a complex process," said Nikhil Sanghani,
Latin America economist at Capital Economics.
    Sanghani noted the state looked set to play a bigger role in
the economy, which while reducing savings and income inequality
may help boost aggregate demand, could lead to a misallocation
of resources and weaker fiscal discipline.
    Brazil's real was flat with focus on a central
bank policy meeting later this week. The bank is widely expected
to keep the Selic rate on hold at a record low 2.00%.
    A central bank survey showed Brazil's 2020 inflation outlook
rose to 3%, the 11th week in a row it has risen as a recent
spike in food prices continues to intensify short-term inflation
    Investors also awaited a decision from Colombia's central
bank policy meeting on Friday.
    A Reuters poll of analysts said Colombia's central bank will
hold the benchmark interest rate steady, ending seven
consecutive months of cuts which took borrowing costs to a
historic low.

    Key Latin American stock indexes and currencies at 1932 GMT:

             Stock indexes                     Latest   Daily %
 MSCI Emerging Markets                         1129.43    -0.62
 MSCI LatAm                                    1949.51    -0.94
 Brazil Bovespa                              100712.05    -0.54
 Mexico IPC                                   38191.01    -1.33
 Chile IPSA                                    3705.07     -2.7
 Argentina MerVal                             50461.35   -3.906
 Colombia COLCAP                               1172.00    -0.28

                Currencies                     Latest   Daily %
 Brazil real                                    5.6229     0.07
 Mexico peso                                   20.9240    -0.27
 Chile peso                                      775.3     0.17
 Colombia peso                                 3812.85    -0.66
 Peru sol                                       3.6037    -0.19
 Argentina peso (interbank)                    78.2400    -0.14

 Argentina peso (parallel)                         186     4.84

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by
Bernadette Baum and Richard Chang)

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