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Colombia c.bank's December policy meeting minutes due

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Latam FX up 0.1%, stocks flat

(Updates with afternoon prices)

By Shashwat Chauhan

Dec 26 (Reuters) - Most Latin American currencies were

slightly weaker in holiday-thinned trade on Thursday, though

Brazil's real advanced against the dollar after its central bank

intervened in the forex market to support the sliding currency.

Brazil's real gained 0.2% against the dollar after

its central bank sold $3 billion in a spot auction, extending a

series of interventions in the foreign exchange market amid a

greenback outflow from Latin America's largest economy.

The real hovers near all-time lows hit earlier this month in

the face of a stronger dollar and a deepening financial crisis

sparked by fiscal policy concerns.

Most markets reopened after the Christmas break, though

volumes were expected to be low heading into the new year.

Mexico's peso weakened 0.2%, while Chile's peso

held firm at 988.68 per dollar.

In Colombia, minutes from its central bank's last policy

meeting, where it cut rates by a smaller-than-anticipated 25

basis points, are due later in the day.

"We expect the minutes to echo the post-meeting message

about the importance of a cautious cutting cycle to minimize the

risks of derailing the disinflation process, while acknowledging

that there is room to dial back the still elevated level of

policy restraint," Goldman Sachs economists wrote in a note.

On Tuesday, Mexican central bank deputy governor Jonathan

Heath told Reuters that the central bank's board could discuss a

rate cut of either 25 basis points or 50 basis points in its

next decision in February.

MSCI's index for Latin American currencies

inched 0.1% up, while a gauge for stocks pared

gains and was now flat.

Both MSCI's Latin American broader stock and currency

indexes are set for steep yearly losses - almost 30% and over

10%, respectively - lagging broader EM assets, as many regional

central banks grapple with rising inflation.

The outlook for 2025 is also likely to be challenging with

persistently high U.S. rates hitting demand for emerging market

assets, with the threat of broad global tariffs from U.S.

President-elect Donald Trump's administration also likely to

weigh.

Elsewhere in emerging markets, Turkey's central bank cut its

key interest rate by 250 basis points to 47.5%, a bit more than

expected.

The Russian central bank said it will cut its net forex

sales by almost 60% in the first working week of 2025,

withdrawing some support for the rouble, which weakened slightly

in response, but remained at around 100 to the U.S. dollar.

HIGHLIGHTS

** Guatemala open to accepting Trump's Central American

deportees, sources say

** World Bank raises China's GDP forecast for 2024, 2025

** Moldova's parliament passes 2025 budget with deficit at

4% of GDP

Key Latin American stock indexes and currencies:

MSCI Emerging Markets 1084.07 -0.16

MSCI LatAm 1878.58 0.01

Brazil Bovespa 121140.61 0.31

Mexico IPC 49534.75 0.44

Chile IPSA 6691.09 0.39

Argentina Merval 2606631.5 2.18

8

Colombia COLCAP 1381.76 -0.14

Brazil real 6.1775 0.21

Mexico peso 20.1881 -0.19

Chile peso 988.68 0.04

Colombia peso 4393 -0.5

Peru sol 3.74 -0.27

Argentina peso 1028.5 -0.24

(interbank)

Argentina peso (parallel) 1190 0.84