Brazil's real, Mexico on track for worst day in three weeks

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By Susan Mathew June 11 - The real and Mexican currencies weakened against a weak dollar on Friday, with Brazil's Latin American on track for its worst session in three weeks. The greenback bounced back strongly after declines when investors shrugged off data showing higher inflation as transitory. Brazil's weekly economy fell 0.6% and was on track for a real loss of around 0.7%. Brazil's services sector lasted in April, official figures showed on Friday, though it failed to recover all the lost ground in March and activity remained below levels in February last year before the Pandemic struck. Its peso dropped 0.2% but optimism after the mid-term elections leaves it with gains of about 1.2% for the week - its best week since early May. On Friday, the data showed the largest annual US industrial output in April posted its biggest increase in over 2 -- 1 decades, 35.7%. The hopes of a rapid recovery from the pandemic are helping the peso, as are concerns of interest rate hikes. But much is already quoted as "currenced in," said Commerzbank analyst. Expected begin of tapering from Q 4 2021 and discussions on 1.7% hikes, challenging times are likely to happen within the next few months. Chile's peso rose 0.3%, tracking copper's share higher. But the rising COVID 19 cases kept sentiment in check with Chilean health authorities announcing a blanket lockdown across the Santiago on Thursday. The second largest copper exporter Peru made small gains from its sol. Socialist Pedro Castillo hold his slim lead in the presidential elections as counting seemed to be close. The final results may take some time but could be contested by competitor Keiko Fujimori with ballots. Among all the stocks, Brazilian food processor JBS SA rose to 10% in early morning trading after Globo columnist Lauro Jardim reported meatpacker BRF SA was interested in possibly acquiring the company. Last week, rival meatpacker BRF announced that it reached a 31% stake in Marfrig Global Foods. Zanite Acquisition Corp backed out of the rally after Embraer extended the merger with the Brazilian aircraftmaker's subsidiary Eve Urban Air Mobility Solutions. Global Stock Indexes and currencies: Stock indexes Latest Daily Change MSCI Emerging Markets 1380.74 0.14 Argentina Peso 95.1300 - 0.02 Chile IPC 51058.65 0.34 Chile MerVal - Colombia COLCAP 1259.99 - 0.06 Cuba Peso 1203.2 0.32 Colombia peso 3603.2 0.29 Peru

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