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Chile to cut interest rate by 75 bps in April- poll

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Brazil's Haddad foresees 'quite expressive' Feb payroll

data

By Ankika Biswas

March 27 (Reuters) - Most resource-heavy Latin American

currencies fell against a steady dollar on Wednesday, with

weakness in key commodities also weighing, while South Africa

kept its benchmark rate unchanged.

Thin trading volumes are expected for the rest of the

holiday-shortened week for most markets. Markets in Peru,

Mexico, Colombia and Argentina will be closed from Thursday,

while Brazil will be shut on Friday. Argentine markets will

remain inactive for four days until Tuesday.

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

lost 0.6% each against the dollar as copper prices

retreated to a two-week low with investors awaiting further

detail Chinese smelters' plans to cut production.

A central bank poll showed Chile is likely to cut its

benchmark rate by 75 basis points to 6.50% at its April meeting,

smaller than a previously anticipated 100-bps reduction.

Major iron ore supplier Brazil's real slipped 0.1%

against the dollar as the mineral's prices fell to a more than

one-week low, pressured by persistent demand concerns in top

consumer China amid lack of significant policy measures to boost

steel uptake.

Brazil's Finance Minister Fernando Haddad said in an

interview with a local radio station said formal job creation

figures for February, due later in the day, will be good and

that growth this year could be higher than 2.2% currently

projected.

Top crude oil exporter Colombia's peso shed 0.2% as

oil prices fell for a second day.

Bucking the trend was Mexico's peso, up 0.3%

against the dollar. Data showed Mexico's seasonally adjusted

unemployment rate was 2.6% in February, while the headline

unadjusted rate was 2.5%.

Elsewhere, South Africa kept its interest rate unchanged at

8.25%, saying on balance risks to the inflation outlook were

skewed to the upside.

"The continued hawkish rhetoric from Governor Kganyago

supports our view that rate cuts will only happen after May's

election," Capital Economics' deputy chief emerging markets

economist Jason Tuvey said.

"Even then, a period of political uncertainty and a build-up

of fiscal risks after the vote could prompt the SARB to not cut

rates at all this year."

Key Latin American stock indexes and currencies:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1035.24 -0.46

MSCI LatAm 2513.32 0.02

Brazil Bovespa 126505.16 -0.28

Mexico IPC 57323.16 0.2

Chile IPSA 6535.05 0.22

Argentina MerVal 0.00 0

Colombia COLCAP 1325.45 0.56

Currencies Latest Daily %

change

Brazil real 4.9890 -0.11

Mexico peso 16.5872 0.29

Chile peso 985.8 -0.60

Colombia peso 3853.44 -0.21

Peru sol 3.7169 -0.62

Argentina peso (interbank) 857.0000 0.00

Argentina peso (parallel) 990 2.53