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EMERGING MARKETS-Latam FX falls as strong U.S. jobs data lifts dollar

      Mexican peso leads declines among Latam FX

      Peru Congress backs motion to start impeaching Castillo

      S.African rand up as Ramaphosa resignation plans denied

    By Shreyashi Sanyal
       Dec 2 (Reuters) - Latin American currencies slipped on
Friday after a much stronger-than-expected reading on U.S.
employment boosted the dollar, while South Africa's rand clung
to gains after rumors of President Cyril Ramaphosa resigning
were rebutted.
    Mexico's peso slipped 0.8%, leading declines among
central and south American currencies as the dollar index
jumped in line with U.S. Treasury yields.
    Data showed that U.S. employers added more jobs than
expected in November, potentially giving the Federal Reserve
more reason to hike interest rates.
    "This will settle into the narrative that the biggest
conundrum the Fed has is that while inflation in the U.S. is
coming down, the labor market remains tight. And as long as the
labor market remains tight, they're going to have to remain
diligent at the job they're doing," said Art Hogan, chief market
strategist at B. Riley in New York.
    The Chilean peso shed 0.3%, while Brazil's real
 edged 0.1% lower.
    Latin American currencies were set to end
their second straight week higher, while the region's stocks
index was set to snap a three-week losing
    Optimism over a downshift in aggressive monetary policy by
the U.S. Federal Reserve and that China will gradually reopen
its economy have bode well for riskier emerging market assets.
    The Mexican government reached an agreement along with labor
representatives and employers, that the country will raise its
minimum wage by 20% next year, though some critics warned the
move could fuel inflation.
    Data showed Brazil's industrial production rose in October
from September, returning to positive territory after
two consecutive monthly declines though still below pre-pandemic
    Among outliers, South Africa's rand rose 1.2%, after
falling some 4% in the last two days, hit by rumors that
President Cyril Ramaphosa was going to quit over a report that
found preliminary evidence he may have violated the
    Financial markets rebounded after the country's ruling party
denied the speculation.
    The Peruvian sol rose 0.3% after the its Congress
approved a motion on Thursday initiated by opposition lawmakers
to start impeachment proceedings against President Pedro
Castillo, the third formal attempt to oust the leftist leader
since he took office last year.
    Key Latin American stock indexes and currencies at 1420 GMT:
         Stock indexes                  Latest   Daily %
 MSCI Emerging Markets                   972.75    -0.57
 MSCI LatAm                             2244.16     0.35
 Brazil Bovespa                       111507.52     0.52
 Mexico IPC                                0.00        0
 Chile IPSA                             5237.15    -0.71
 Argentina MerVal                          0.00        0
 Colombia COLCAP                        1235.45    -0.58

             Currencies                 Latest   Daily %
 Brazil real                             5.1849     0.22
 Mexico peso                            19.2341    -0.58
 Chile peso                               878.7     0.05
 Colombia peso                          4747.88     0.25
 Peru sol                                3.8237    -0.19
 Argentina peso (interbank)            168.0700    -0.20

 Argentina peso (parallel)                  308     1.62

 (Reporting by Shreyashi Sanyal in Bengaluru; editing by
Philippa Fletcher)

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