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EMERGING MARKETS-Mexican peso leads Latam losses on power reform hiccup

    * Latam currencies fall on dollar buying
    * Colombian peso hit by weak c.bank outlook

    By Ambar Warrick
    Feb 4 (Reuters) - Mexico's peso led early losses across
Latin American currencies on Thursday after the Supreme Court
struck down a key component of the government's reform agenda,
while most other units fell on increased buying into the dollar.
    The peso dropped 0.6% to the dollar after Mexico's
Supreme Court upheld an antitrust suit against a crucial part of
the government's plan to reform the power sector.
    The move would have given state-run electricity generators
an edge in the sector, and was met with criticism from private
businesses.
    Other Latin American currencies fell as positive U.S.
economic data and optimism over a bumper stimulus package drove
buying into the dollar, despite its position as a currency that
usually weakens during risk-on trade.
    "The DXY index is on track to register its fourth day of
gains out of the last five... This comes even though global
equities have been able to shake off some weakness overnight and
return to a positive trajectory," analysts at TD Securities
wrote in a note.
    Chile's peso was also among the worst performers in
Latam on Thursday, as concerns over a near-term drop in Chinese
demand weighed on the prices of copper, the country's top
export.
    The peso has been subdued despite the launch of a COVID-19
vaccination program this week.
    Most Latam currencies have lagged their broader emerging
market peers this year as a second wave of COVID infections
damaged economic activity and raised concerns over stretched
fiscal spending in the region.
    Colombia's peso dropped 0.5% after the central bank
said that the second wave of infections - which had spurred
tighter restrictions in major cities - will affect the country's
economy throughout the remainder of 2021 and delay its recovery.

    Most Latam stocks rose in early trade, tracking overnight
gains on Wall Street.
    Brazilian iron ore miner Vale SA pushed up the
Bovespa index after it forecast a strong production
ramp-up in 2021, as well as improved sales.
    
    Key Latin American stock indexes and currencies:
    
                              Latest       Daily % change
 MSCI Emerging Markets         1388.66                  -0.29
                                        
 MSCI LatAm                    2382.54                  -0.32
                                        
 Brazil Bovespa              120058.32                   0.28
                                        
 Mexico IPC                          -                      -
                                        
 Chile IPSA                    4402.82                   0.02
                                        
 Argentina MerVal             50429.92                  1.148
                                        
 Colombia COLCAP               1363.83                   0.35 Currencies             Latest       Daily % change
 Brazil real                    5.3803                  -0.22
                                        
 Mexico peso                   20.3120                  -0.63
                                        
 Chile peso                      736.4                  -0.43
                                        
 Colombia peso                 3550.86                  -0.48
 Peru sol                       3.6447                  -0.11
                                        
 Argentina peso                87.9000                  -0.10
 (interbank)                            
                                        
 

 (Reporting by Ambar Warrick in Bengaluru;
Editing by Bernadette Baum)
  
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