The U.S. Federal Reserve and the European Central Bank both held on rates and said they were likely to do so in the near term. Emerging markets, which have largely mimicked the Fed's easing cycle this year, have found support from major central banks adopting an accommodative stance in the face of an economically damaging trade war between the United States and China.
* Trump to restore tariffs on metal imports from Brazil, Argentina * Latam FX gain as dollar drops after weak U.S. manufacturing data * Brazil stocks rise after strong manufacturing data * Chilean peso firms as central bank intervention kicks in By Susan Mathew Dec 2 (Reuters) - A dollar weakened by poor U.S. economic data helped Latin American currencies brush off the re-imposition of U.S. tariffs on steel and aluminum imports from Brazil and Argentina on Monday. Brazil's real firmed 0.4% with a spot auction by the central bank supporting the currency, while the Argentine and Mexican pesos were flat against a dollar that slid on weak U.S. manufacturing data. Surprising officials in the two South American countries, U.S. President Donald Trump said on Monday he would restore tariffs on U.S. steel and aluminum imports, accusing them of devaluing their currencies to the detriment of U.S. farmers.
MSCI's index for Latin American currencies slipped 0.3%, resuming its downward trend as it fell for the tenth time in the last eleven sessions. Sentiment took a hit earlier in the day after CNBC reported that the mood in Beijing was "pessimistic" because of U.S. President Donald Trump's reluctance to roll back tariffs.