EMERGING MARKETS-Most Latam currencies slip; rate hike prospects buoy Brazil's real
By Susan Mathew
Nov 25 (Reuters) - Latin American currencies lagged emerging market peers on Thursday, with Mexico's peso hit by shrinking economic growth, while in Brazil, inflation near 20-year highs kept the currency from losses on speculation of large interest rate hikes.
After a 1% slide on Wednesday on central bank leadership uncertainty, Mexico's peso MXN= extended losses to a sixth straight session, down 0.5% to stay near eight-month lows.
Seasonally adjusted data on Thursday showed Mexico's economy shrank 0.4% in the third quarter from the previous three month period, with a sharp contraction in service sector activity driving the decline. A Reuters poll had forecast a 0.3% contraction.
This comes a day after figures showed annual inflation rose faster than expected to 7%, its highest in over a decade, adding pressure on the central bank to tighten policy more.
Volumes were expected to be low, with U.S. Treasury and stocks markets shut for Thanksgiving.
Brazil's real BRBY was flat, faring better than regional peers as expectations of a large rate hike next month increased after consumer prices rose slightly more than expected. Month-on-month, however, prices fell.
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