THE MARKET IS EMERGING – A noticeable increase in Brazil, with a focus on vaccination campaigns | Instant News

 (Updates prices throughout)
    By Shreyashi Sanyal
    Jan 18 (Reuters) - Brazil's real rose on Monday as the
country geared up to send vaccine doses across its states later
in the day, while most other currencies in Latin America were
subdued against a stronger dollar.
    The real gained 0.6% to 5.26 against the
dollar, with investors eying the start of a vaccination campaign
beginning at 5 p.m. (2000 GMT) on Monday, a plan that was
initially due to start on Wednesday.
    Brazil will roll out the only vaccine available from the
government - the CoronaVac shot made by China's Sinovac Biotech
 and imported by the Butantan biomedical center in Sao
    "Despite COVID-19 and domestic fiscal uncertainty, mostly
due to the global inflow of capital to the EM sphere, we still
see the USDBRL trading at 5.05 by end-2021 and 4.95 by
end-2022," said Mauricio Une, senior strategist at Rabobank. 
    Data showed economic activity in Brazil rose in November for
a seventh straight month, slightly more than economists had
expected although it was the smallest increase during that
growth streak.
    Other currencies in Latin America fell as the dollar
continued its rally to hit a four-week high, with markets
watching the new U.S. administration's stance on the greenback
as President-elect Joe Biden prepares to take office on
    Mexico's peso was up 0.4% against the dollar. The
peso was lower earlier in the session as oil prices weakened on
rising coronavirus cases and a slowing pace of vaccinations
across the world.
    The Chilean peso was flat. The country's central bank
last week announced a plan to purchase $12 billion over the next
15 months to replenish and expand its foreign currency reserves.
    Among stock indices in the region, Brazil's Bovespa
added 1.5% after data showed China's economy picked up speed in
the fourth quarter and remained poised to expand further this
year even as the global pandemic rages unabated.
    China is the biggest importer of agricultural goods and
metals from Brazil.    
    Trading activity remained quiet on Monday, with U.S. stock
markets shut for the federal Martin Luther King Jr. holiday. 
    Key Latin American stock indexes and currencies at 1819 GMT:
           Stock indexes                   Latest   Daily %
 MSCI Emerging Markets                     1359.04     0.07
 MSCI LatAm                                2519.30     1.53
 Brazil Bovespa                          122175.82     1.52
 Mexico IPC                               46253.28     0.79
 Chile IPSA                                4614.89     0.94
 Argentina MerVal                         50105.62   -0.783
 Colombia COLCAP                           1447.51    -0.35
              Currencies                   Latest   Daily %
 Brazil real                                5.2694     0.63
 Mexico peso                               19.6950     0.39
 Chile peso                                  733.6    -0.03
 Colombia peso                             3480.04    -0.58
 Peru sol                                   3.6137    -0.03
 Argentina peso (interbank)                86.0600    -0.37
 Argentina peso (parallel)                     155     2.58

 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Steve
Orlofsky and Jonathan Oatis)


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