EMERGING MARKETS-Brazil real recovers as economy minister quashes resignation bets

    * Brazil's real recovers from 12-week low
    * Stimulus hopes bring cheer to Mexican peso
    * U.S., Colombia to bring $5 bln in investment to rural
    * Chile's Q2 GDP plunges, but mining industry grows; peso up

 (Updates prices throughout, adds comments)
    By Susan Mathew and Shreyashi Sanyal
    Aug 18 (Reuters) - Brazil's real rose on Tuesday after
Economy Minister Paulo Guedes put to rest speculation about his
imminent departure, while Mexico's peso resumed its winning
streak as the country's  president said an economic recovery
plan would be unveiled in two weeks. 
    Against a sinking dollar, Brazil's real firmed 0.4%,
recovering from its lowest level since May. The Bovespa
stock index was headed toward its best day in three
weeks, aided also by upbeat earnings from retailer Magazine
    Guedes, who is the Brazil government's remaining "super
minister," said late on Monday he had the full confidence of
President Jair Bolsonaro. Speculation was rife that political
pressure for more public spending could force him to quit,
sending Brazil markets well into the red on Monday.

    The country has seen a slew of ministerial resignations in
the past few months over differences with the administration,
increasing political uncertainty and with it doubts about the
future of reforms in the country.
    Lower house speaker Rodrigo Maia on Monday said he is
confident congress will approve tax reform this year.
    "He (Guedes) wants to maintain the spending cap which limits
annual government spending, while there are demands to abandon
it this year due to the crisis. That means times remain tough
for BRL," said You-Na Park-Heger, forex and emerging markets
analyst at Commerzbank. 
    "It is mainly the ailing national finances that cause
concern amongst central bankers so that they see the
possibilities of an expansionary monetary policy as limited."
    Brazil had registered 3.4 million cases of the disease and
more than 108,000 related deaths as of Monday.
    In Mexico, the peso rose 0.2%, up for the fifth time
in six. The plan to revive the economy from the coronavirus
pandemic would target sectors like construction and energy,
President Andres Manuel Lopez Obrador said on Monday.

    Crude exporter Colombia's peso edged lower as a
bounce faded from news on Monday of the United States working
with the country on an investment initiative of up to $5 billion
in private funds for rural areas over three years. 
    A surge in copper prices, meanwhile, helped investors look
past a 14.1% plunge in GDP of the red metal's top exporter,
Chile. The country's peso tracked its best session in a
month as the data showed mining remained a bright spot, with the
industry growing 1.6% despite the pandemic.
    Argentina's peso, returned from an extended weekend
to plumb to new lows, even as creditors reaffirmed their support
for the government's amended bond restructuring offer, which was
 filed to the U.S. Securities and Exchange Commission on Monday.
    Key Latin American stock indexes and currencies at 1943 GMT:
           Stock indexes                    Latest    Daily %
 MSCI Emerging Markets                       1105.52     0.51
 MSCI LatAm                                  2006.53      1.3
 Brazil Bovespa                            102124.24     2.54
 Mexico IPC                                 39045.73    -0.61
 Chile IPSA                                  4010.99    -0.74
 Argentina MerVal                           46516.04   -4.185
 Colombia COLCAP                             1157.61     0.38
               Currencies                   Latest    Daily %
 Brazil real                                  5.4725     0.41
 Mexico peso                                 22.1186     0.22
 Chile peso                                    794.8     1.53
 Colombia peso                               3783.91    -0.10
 Peru sol                                     3.5657     0.34
 Argentina peso (interbank)                  73.3900    -0.31
 Argentina peso (parallel)                       129     2.33

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