By Bruno Federowski
BRASILIA, Aug 1 (Reuters) - The Mexican peso strengthened on Wednesday amid growing optimism about the renegotiation of the North American Free Trade Agreement (NAFTA), a crucial pillar of the nation's economy.
Mexican negotiators are traveling to Washington this week for another round of talks with the United States. The two countries are nearing agreement on auto content rules, which have been a sticking point in the negotiations, Mexican and Canadian officials said on Wednesday. will be closely monitoring the talks in the coming days, CI Banco economist James Salazar said.
"Depending on the scope of the potential agreement, the peso could even appreciate to below 18 per dollar," he said.
The peso firmed 0.17 percent on Wednesday.
But Mexico's benchmark stock index slipped 0.55 percent as investors continued to book profits after second-quarter earnings reports last week.
In Brazil, the benchmark stock index Bovespa .BVSP inched up 0.3 percent, bolstered by the banking sector's recovery. The country's real currency dipped 0.15 percent.
Declining prices of basic materials weighed on shares of miners, such as Brazil's Vale SA VALE3.SA .
The Chilean peso CLP=CL underperformed, falling 0.89 percent as copper prices slumped due to concerns over escalating trade tensions.
Latin American stock indexes and currencies at 1959 GMT:
Stock indexes
daily %
YTD %
Latest
change
change MSCI Emerging Markets
1086.11
-0.12
-6.13 .MSCIEF
MSCI LatAm .MILA00000PUS
2694.84
-0.27
-4.45
Brazil Bovespa
79244.66
0.03
3.72
Mexico IPC
49427.05
-0.55
0.15
Chile IPSA
5406.10
-0.52
-2.85
Chile IGPA
27218.88
-0.52
-2.72
Argentina MerVal
29366.47
0.27
-2.33
Colombia IGBC
12184.83
0.4
7.16
Venezuela IBC
89611.55
0.29 6994.35
Currencies
daily %
YTD %
change
change
Latest
Brazil real
3.7584
-0.15
-11.84
Mexico peso
MXN=D2
18.6150
0.17
5.82
Chile peso
CLP=CL
642.55
-0.89
-4.34
Colombia peso COP=
2895.85
-0.27
2.97 Peru sol
PEN=PE
3.272
0.00
-1.07
Argentina peso (interbank)
27.5000
-0.29
-32.36 ARS=RASL
Argentina peso (parallel)
28.15
0.36
-31.69 ARSB=