Devik Jain

The real dipped 1% to 5.4520 against the dollar, while the Bovespa stock index dropped 2.1% after Lula's incoming administration proposed to lawmakers guidelines for a constitutional amendment to exempt some 175 billion reais ($32.41 billion) from next year's budget to pay for social programs. Brazil's stock index and real have fallen 7.1% and 5% so far this month, plagued by concerns about President-elect Luiz Inacio Lula da Silva's fiscal spending plans, and uncertainty on his cabinet make-up.

Following a three-day losing streak, Brazil's real rose 0.6% after Vice President-elect Geraldo Alckmin said Brazil's incoming government will be fiscally responsible, promising a budget surplus and reduction in public debt. The real is seen marking its second straight week of losses on worries about fiscal spending by the incoming government.

The currency and the stock index Bovespa have slumped 2.5% and 5.6%, respectively, this month as investors fretted about the state of Brazil's public accounts after Lula's incoming administration proposed exempting some 175 billion reais ($32.51 billion) from the spending cap on next year's budget to pay for welfare programmes. Among other Latin American currencies, Mexico's peso fell 0.5% and Chile's peso was up 0.1%, while Colombia's peso climbed 0.8% even as the prices of their top exports, oil and copper, dipped on demand concerns from China.

European shares rose on Tuesday, lifted by rallying oil stocks after a rout in the previous session, as investors looked toward the next batch of data for…

Nov 23 (Reuters) –

Nov 23 (Reuters) –

Brazil’s real fell on Wednesday as

The real lost 0.3%, extending Tuesday's losses against a weaker dollar in volatile trading after Bolsonaro argued votes from some machines in last election should be "invalidated". Electoral experts and political analysts said the challenge appears weak on merits but could still fire up supporters who have been protesting Bolsonaro's loss to leftist rival Luiz Inacio Lula da Silva. Investors also are nervous about the incoming Lula administration's fiscal plans and uncertain about the cabinet's composition, concerns that were also reiterated by Brazil's central bank chief Roberto Campos Neto.

Brazil's real jumped 0.9%. Brazilian Senator Marcelo Castro told Reuters that the spending cap waiver bill, which aims to exempt at least 100 billion reais ($19 billion) for welfare spending next year, must be approved by Dec. 10 so lawmakers can focus on the country's budget for next year. Meanwhile, data showed consumer prices hit 0.53% in mid-November but came in below market forecasts, reinforcing views that the Brazilian central bank would stick to its current plans after ending an aggressive tightening cycle.

* Mexican peso leads declines among Latam FX * Peru Congress backs motion to start impeaching Castillo * S.African rand up as Ramaphosa resignation plans denied (Updates prices) By Shreyashi Sanyal and Devik Jain Dec 2 (Reuters) - Latin American currencies fell on Friday after a stronger-than-expected reading on U.S. employment raised concerns about a hawkish Federal Reserve, while South Africa's rand rebounded a day after rumors of President Cyril Ramaphosa resigning shook markets. Mexico's peso dipped 1.5% against the dollar, leading declines among central and south American currencies as prices of its top export oil dropped ahead of an OPEC+ meeting on Sunday and EU ban on Russian crude on Monday. J.P. Morgan said it does not expect a recession in Mexico in 2023 as resilient domestic demand should help offset the negative impact from a "mild U.S. recession" until the end of next year.