EMERGING MARKETS-Argentine peso drops after c.bank…

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SAO PAULO, Sept 25 – The Argentine peso tumbled more than 4 percent on Tuesday in light trading, after the nation’s central bank chief quit amid reports of disagreements with Economy Minister Nicolas Dujovne. The move by Luis Caputo to leave his post took the market by surprise, causing jitters as the central bank is trying to stem a rapid devaluation of the peso currency. While the government said his resignation was due to personal reasons, local media reported that it came amid policy disagreements. Caputo was the second central bank chief in Argentina to resign over the last four months. He had replaced former central bank head Federico Sturzenegger in July. The peso fell some 4.77 percent in midday trade, its biggest intraday loss since August, although low liquidity caused by a national strike protesting President Mauricio Macri’s policies weighed on volume. Across Latin America, equities and currency markets were mixed. The other major loser in currency markets was Brazil’s real currency, which was down 0.66 percent against the U.S. dollar after a key poll on Monday night showed leftists gaining ground in the nation’s October presidential election. According to the poll, leftist Fernando Haddad gained 4 percentage points, while right-wing candidate Jair Bolsonaro’s support remained steady. In a second round runoff, the poll showed Bolsonaro would lose to every potential challenger, except for center-left environmentalist Marina Silva, who is not expected to make it into the runoff. “The possibility of a Haddad victory is bringing caution to the market,” said Vitor Miziara, a partner at investment advisor Criteria. “The dollar, which had taken profits after testing 4.20 reais (to the dollar), is again the election hedge for investors.” The real was trading at about 4.13 to the dollar at mid-day. Key Latin American stock indexes and currencies at 1505 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging Markets 1042.35 -0.86 -10.02 MSCI LatAm 2527.19 -0.78 -10.64 Brazil Bovespa 77776.66 -0.27 1.80 Mexico IPC 49649.25 0.47 0.60 Argentina MerVal 34090.71 2.8 13.39 Colombia IGBC 12442.68 0.64 9.43 Venezuela IBC 309941.50 1.95 24437.38 Currencies daily % YTD % change change Latest Brazil real 4.1257 -0.95 -19.69 Mexico peso 19.0050 +0.19 Chile peso 667.8 0.67 -7.96 Colombia peso 2997.73 0.13 -0.52 Peru sol 3.306 -0.15 -2.09 Argentina peso 39.2000 -4.77 -52.55 (interbank) Argentina peso 38 0.66 -49.39 (parallel) (Reporting by Jorge Otaola and Gram Slattery; Additional reporting by Camila Moreira; Editing by Meredith Mazzilli)

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