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Argentina launches $65 bln bond swap to push back 2024

debt

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Brazil Feb monthly inflation forecast at 1-yr high

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Brazil's Petrobras on track to extend losses

By Ankika Biswas

March 11 (Reuters) - Most Latin American currencies were

largely muted against the dollar on Monday as investors awaited

U.S. consumer inflation data for clues on the Federal Reserve's

rate path, while Chile's peso led losses tracking weak copper

prices.

The MSCI index for Latam currencies rose

0.1% by 10:08 a.m. ET (1408 GMT), after hitting a near two-month

high on Friday, with the dollar gaining some ground after its

worst weekly showing against the euro this year as mixed data

kept prospects of a June rate cut alive.

All eyes are on the U.S. CPI data on Tuesday ahead of the

its central bank's March monetary policy decision next week.

Throughout the week, investors will also monitor a slew of

other data including Brazil's inflation and retail sales,

Argentina's CPI and a likely interest rate decision, Mexico's

industrial output, Colombia's retail sales, and Peru's GDP.

A Reuters poll showed Brazil's monthly inflation rate likely

accelerated to a one-year high in February, from where it should

begin to fall back again in coming months. The real was

up 0.1% against the greenback.

"More recently, price concerns have begun to re-emerge,

especially after January IPCA (inflation) surprised the market

to the upside," said Bank of America analysts in a note.

"Though we continue to believe that inflation remains well

behaved and these worries should not change the monetary

authority's guidance, the breakdown of the latest prints -

namely, core services - has drawn attention of analysts and the

BCB (Brazil's central bank)."

Top copper producers Chile's peso and Peru's sol

fell 0.4% and 0.2%, respectively, as prices of the red

metal fell ahead of Chinese loan data.

Meanwhile, Argentina's government will launch a huge

voluntary debt swap on Monday of peso and some dollar-linked

instruments set to mature in 2024, a bid to push back repayments

amid a major economic crisis hammering the South American

country.

The Argentine peso opened 0.18% lower at 848.5

per dollar in interbank trading.

Among others, the Mexican peso and the Colombian

peso were muted tracking weakness in crude oil prices.

Meanwhile, the MSCI index tracking Latam stocks

fell 0.4% to a near seven-week low.

Petrobras shares fell 2% on Monday. The Brazil

government pushed the state-run oil major to reinvest cash set

aside for dividends, after its board spiked an extra dividend

that sent its shares plunging over 10% on Friday.

The drop in Petrobras, coupled with a near 3% drop in miner

Vale kept Brazil's benchmark stock index at

around the three-month low hit on Friday, last down 0.7%.

On Friday, Reuters reported Vale will retain Eduardo

Bartolomeo as CEO through 2024.

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1038.95 0.18

MSCI LatAm 2481.00 -0.38

Brazil Bovespa 126215.00 -0.67

Mexico IPC 54994.54 0.09

Chile IPSA 6359.45 0.34

Argentina MerVal 0.00 0

Colombia COLCAP 1293.84 -0.39

Currencies Latest Daily %

change

Brazil real 4.9768 0.10

Mexico peso 16.8018 0.04

Chile peso 963.9 -0.35

Colombia peso 3895.88 0.10

Peru sol 3.6848 -0.23

Argentina peso (interbank) 848.0000 -0.12

Argentina peso (parallel) 975 1.03