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EMERGING MARKETS-Brazil's real at near 3-month low on policy, economic uncertainty

    * Brazil's Senate overturns presidential veto on public
sector pay
    * Move could hit economy ministry's saving -analyst  
    * U.S. weekly jobless claims back above 1 million
    * Oil, copper, iron ore prices slide

 (Adds details, updates prices)
    By Susan Mathew and Ambar Warrick
    Aug 20 (Reuters) - Brazil's real fell on Thursday, with
broader Latin American currencies following suit after a warning
from the U.S. Federal Reserve and weak economic data underscored
a move out of risk assets.
    The real sank 0.6%, recouping a measure of the
day's losses but still trading around three-month lows, while
losses in Brazilian stocks were mitigated by heavyweight
iron ore miner Vale.
    Brazil's Economy Minister Paulo Guedes called a Senate
decision on Wednesday to overturn a presidential veto blocking
public sector pay rises during the COVID-19 pandemic a
"disaster" and a "crime" against the people.
    If the Chamber (of Deputies) approves the Senate's decision,
"this could jeopardize the savings of 130 billion reais, which
the economy ministry had expected," said analysts at CM Capital
Markets.
    Amid investor worries that Brazil may exceed its pending
cap, President Jair Bolsonaro said emergency payments to the
country's poor could be extended through the end of the year.
Guedes said Brazil's economy is recovering in the shape of a
Nike "swoosh".
    Data also showed that federal tax revenue in Latin America's
largest economy fell to its lowest since 2009 due to continued
pressure from the coronavirus pandemic.
    Investors fled to safe havens such as the dollar and gold
after the Fed said more policy easing may be needed to help the
economy out of a pandemic-induced slump. Data on Thursday showed
new claims for unemployment benefits rose above 1 million in the
latest week.
    Oil, iron ore and metal prices fell, pressuring assets in
commodity-heavy Latam.
    The Mexican peso was flat and Chile's currency
slid about 0.5%, while Colombia's currency lost 0.8%.
    Their stock markets were muted, in line with lackluster
moves on Wall Street. 
    Surging number of COVID-19 cases in Latam also weighed but
some optimism came from Brazil's health ministry which said the
spread of the virus in the country could be about to slow.
 
    Elsewhere in the emerging markets, Turkey's lira lost
0.3% against the dollar after the central bank held its key rate
steady as expected despite the lira hitting record lows this
week. 
    The bank will continue back-door liquidity measures, it
said, and raised forex and lira required reserve ratios for
commercial banks.
    
    Key Latin American stock indexes and currencies:
    
    Stock indexes             Latest     Daily % change
 MSCI Emerging Markets         1080.79              -1.69
                                        
 MSCI LatAm                    1962.94              -1.07
                                        
 Brazil Bovespa              100699.98              -0.15
                                        
 Mexico IPC                   38712.74              -0.79
                                        
 Chile IPSA                    3974.53              -0.61
                                        
 Argentina MerVal             47539.25              0.143
                                        
 Colombia COLCAP               1171.39               0.83 Currencies             Latest     Daily % change
 Brazil real                    5.5651              -0.64
                                        
 Mexico peso                   22.1315              -0.04
                                        
 Chile peso                      787.7              -0.48
                                        
 Colombia peso                    3789              -0.89
 Peru sol                       3.5768              -0.42
                                        
 Argentina peso                73.5200              -0.05
 (interbank)                            
                                        
 
    

 (Reporting by Susan Mathew in Bengaluru; Additional reporting
by Maria Carolina Marcello and Gabriel Ponte in Brasilia
Editing by Paul Simao and Alistair Bell)
  
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