Latin American Currencies Generally Stronger Against Dollar, Friday, June 08, 2007 10:40:46 AM

The Latin American currencies were generally stronger against the dollar Friday morning in New York. The Brazilian real advanced against its American counterpart as traders returned from the Corpus Christi holiday on Thursday to react to the Brazilian Central Bank`s rate cut Wednesday. Meanwhile, the Mexican peso was choppy against the buck through much of the morning.

The Mexican peso was largely uncertain versus the greenback Friday morning in New York. The peso surged in the early morning, reaching an intraday high of 11.0598 at 3:30 am ET. The Mexican currency began to retreat through the morning soon after, fetching a mark of 10.9600 at 10:25 am. This returned the peso to its level around midnight. Traders mulled data released by the Bank of Mexico Thursday showing that inflation was softer-than-expected in May.

The Brazilian real advanced against the dollar Friday morning in New York. After dropping at 8 am ET, the real gained steadily soon after that. At 10:30 am, the Brazilian currency fetched a mark of 1.9650. This is compared to an intraday high of 1.9625 at 10:20 am and an intraday low of 1.9790. Traders still were digesting Wednesday`s decision by the Brazilian Central Bank lowered the benchmark Selic interest rate by 0.5 percentage points to 12%.

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