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EMERGING MARKETS-Currencies set to break seven-day winning streak; Chile's peso outperforms

    * Rising copper prices lift Chile's peso 
    * Citi books profit in South African rand 
    * Real, rand, Chilean peso most undervalued EM FX - Deutsche
    * Oil prices dip; Mexican peso drops more than 1%

    By Susan Mathew
    Feb 16 (Reuters) - Emerging market currencies looked set to
break a seven-day advance on Tuesday as the dollar showed signs
of stabilising, while Chile's peso firmed as copper prices hit
nine-year highs.
    The dollar moved marginally into positive territory and away
from three-week lows, hitting emerging market currencies across
the board.       
    MSCI's index of EM currencies lost 0.3%, and
was on course to end its longest rally since August. Erasing
session gains, South Africa's rand fell from one-year
highs, down 1%, while Turkey's lira slipped from a
six-month peak. 
    Citigroup Inc said it was booking a profit in its
three-month bet on the South African rand versus the U.S.
dollar. "There is a point at which the underlying very weak
growth trend and its fiscal implications could start impacting
the ZAR in a negative way," they said in a note.
    Oil prices edged away from recent highs, hitting currencies
of crude exporting countries, with Russia's rouble ending
a nine-session winning run, while Mexico's peso dropped
1.2%, set for its worst day in two weeks. The Colombian peso
 gave up 0.8%, retreating from more than three-week highs.

    Markets in Brazil and Argentina were closed for local
holidays. 
    "Brazilian real, South African rand and the Chilean peso are
the three most undervalued EM currencies on an aggregate basis
... highlighting that markets have yet to price reflation across
EM commodity exporters," said Deutsche Bank strategists in a
note. 
    Meanwhile, Chile's peso firmed as much as 0.8%,
extending a rally to a third straight session, as prices of the
country's main export revenue generator, copper, were boosted by
optimism about a global economic recovery. 
    Stocks in the region tracked a higher open
on Wall Street, with vaccine optimism also playing a part.
Colombia will begin COVID-19 vaccinations on Wednesday, while
Mexico on Monday began the task of vaccinating millions of
senior citizens.
        
    Key Latin American stock indexes and currencies:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1442.24     0.31
                                   
 MSCI LatAm               2420.49     0.19
                                   
 Mexico IPC                     -        -
                                   
 Chile IPSA               4664.72     0.97
                                   
 Colombia COLCAP          1374.29     0.36
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Mexico peso              20.2260    -1.36
                                   
 Chile peso                 718.5     0.08
                                   
 Colombia peso             3516.2    -0.77
                                   
 Peru sol                  3.6497    -0.16
                                   
 
 (Reporting by Susan Mathew in Bengaluru. Editing by Jane
Merriman)
  
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