(Updated at 1520 GMT)
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Brazil's service sector hits fresh record high in
September
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World leaders head to South America for summit
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Mexico to simplify fiscal regime for state oil firm Pemex
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MSCI Latam stocks index off 0.6%, FX dips 0.1x%
By Pranav Kashyap and Johann M Cherian
Nov 13 (Reuters) - Most Latin American currencies traded
flat to lower against a volatile dollar on Wednesday, while
Brazil's real dipped after a planned central bank dollar auction
was postponed and investors eyed a summit taking place in Peru.
MSCI's index tracking Latin American currencies
dipped 0.1%, as the dollar see-sawed between
marginal gains and losses after an in-line U.S. inflation report
underscored the likelihood of an interest rate cut by the
Federal Reserve in December.
The greenback was close to a six-month high as markets
priced in higher interest rates under an upcoming Donald Trump
administration, whose fiscal, trade and immigration polices are
seen as inflationary by analysts.
The Mexican Peso gave up marginal gains and was last
flat at 20 to the dollar. The currency has declined over 17%
this year as a controversial judicial overhaul, uncertainty
around Trump's policies against the country and unsustainable
public spending hurt appetite for the peso.
Investors are also anticipating a 25 basis-point interest
rate cut, along with the unveiling of the 2025 budget, both
slated for Thursday.
President Claudia Sheinbaum announced a plan to simplify the
fiscal regime for state oil firm Petroleos Mexicanos, in effort
to boost the producer whose heavy debts have weighed on state
coffers.
Copper exporter Peru's sol dipped 0.3%, tracking weak
prices of the red metal. The country is also hosting the
Asia-Pacific Economic Cooperation (APEC) forum that starts today
through November 15.
Although the formal agenda centers on financing energy
transition, discussions are likely to pivot towards the
implications of a potential Trump 2.0 presidency.
"Leaders have to be very aware of the fact that if they're
not going to cooperate with the United States, there is always
going to be economic pressure. But at the same time it also
serves as a way for them to look at what possibilities (for
cooperation) they have," Juan Perez, director of trading at
Monex said.
Meanwhile, the Brazilian real weakened 0.6%. The
local central bank postponed $4 billion in two dollar auctions
with repurchase agreements after an operational issues hampered
the scheduled sale on Wednesday.
Separately, data revealed stronger-than-expected growth in
services activity in September, further bolstering the case for
upcoming interest rate hikes by the domestic central bank.
Fellow copper producer Chile's peso inched up after
three sessions of declines, while oil exporter Colombia's peso
depreciated 1.2% as crude prices dipped.
On the stocks front, an index tracking
bourses in the region dropped 0.6%, with heavy-weight Brazilian
equities losing 0.4%.
Mexican stocks lost 0.2% and was set to mark its
fourth day in the red, while Colombia's Colcap index
crept up 0.1%.
Colombia's Ecopetrol fell 1.2% ahead of quarterly
results.
Latin American market
prices from Reuters
Equities Latest Daily %
change
MSCI Emerging Markets 1093.94 -0.84
MSCI LatAm 2092.77 -0.43
Brazil Bovespa 127115.19 -0.46
Mexico IPC 50915.63 -0.35
Chile IPSA 6573.95 1
Argentina Merval 2019993.4 0.395
2
Colombia COLCAP 1346.87 0.11
Currencies Latest Daily %
change
Brazil real 5.7847 -0.62
Mexico peso 20.6101 -0.14
Chile peso 984.8 0.05
Colombia peso 4499 -1.23
Peru sol 3.7982 -0.32
Argentina peso (interbank) 998 flat
Argentina peso (parallel) 1115 1.76
(Reporting by Pranav Kashyap and Johann M Cherian in Bengaluru;
Editing by Toby Chopra)
Line of Credit 
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