CORRECTED-EMERGING MARKETS-Venezuela bonds dip ahead of controversial assembly vote

 (Corrects first paragraph to show bonds fell to nearly their
lowest level, not lowest level in over a year)
    By Bruno Federowski and Sheky Espejo
    SAO PAULO/MEXICO CITY, July 28 (Reuters) - Venezuelan
sovereign bonds due in 2022 fell to nearly their lowest level in
over a year on Friday, ahead of a weekend election in which
voters will elect members of a controversial new legislative
body championed by President Nicolas Maduro.
    The Sunday vote, which critics fear will add to Venezuela's
slide into dictatorship, is being closely watched by Venezuelan
    The August 2022 bonds dropped more than 2
percent on Friday, while Venezuela's currency weakened past
10,000 bolivars per U.S. dollar. The bolivar is down more than
99 percent against the dollar since Maduro came to power in
    The constituent assembly election has been broadly condemned
by countries around the world as a weakening of democratic
governance in Venezuela, which is also struggling under a
crippling economic crisis.
    On Friday, Venezuelan opposition sympathizers began blocking
streets as part of a mobilization against the 545-member
assembly, which will have the power to rewrite the constitution
and dissolve state institutions. Maduro says the body will help
calm months of street protests.                
    The Brazilian real firmed 0.68 percent after data
showing lackluster wage gains in the United States, reducing
bets on another U.S. rate hike this year.
    The currency has struggled to extend recent gains after a
four-week rally drove it to its strongest level in two months.
    In Mexico, the peso weakened slightly. 
    "The Mexican peso continues to depreciate as investors lose
confidence that the rally can continue further, as NAFTA
negotiations draw closer," said Gabriela Siller, a strategist at
Banco BASE.
    Still, the International Monetary Fund on Friday said the
peso is undervalued between 5 percent and 15 percent in a
scenario where protectionist risks don't materialize.

    Latin American stock indexes and currencies at 2043 GMT:
 Stock indexes                           daily %     YTD %
                             Latest       change    change
 MSCI Emerging Markets         1063.09     -0.55     23.97
 MSCI LatAm                    2746.13      0.38     16.89
 Brazil Bovespa               65428.58      0.23      8.64
 Mexico S&P/BMV IPC           51246.35     -0.02     12.28
 Chile IPSA                    5073.00      0.47     22.20
 Chile IGPA                   25338.60      0.41     22.21
 Argentina MerVal             21684.07      1.83     28.17
 Colombia IGBC                10980.97      0.16      8.42
 Venezuela IBC               135796.31       0.9    328.31
 Currencies                              daily %     YTD %
                                          change    change
 Brazil real                    3.1340      0.68      3.68
 Mexico peso                   17.7700     -0.25     16.74
 Chile peso                      653.8     -0.70      2.58
 Colombia peso                 2999.84      0.37      0.06
 Peru sol                        3.245      0.00      5.21
 Argentina peso                17.7975     -0.83    -10.80
 Argentina peso                  18.38      0.22     -8.49
 (Reporting by Bruno Federowski; editing by Grant McCool and Tom

Leave a Reply

Your email address will not be published.

nine + 15 =