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EMERGING MARKETS-Peru's sol hits new lows, Mexican peso up for fourth week running

    * Socialism jitters hit sol
    * Brazil's real best weekly performer

 (Updates prices)
    By Ambar Warrick and Susan Mathew
    April 23 (Reuters) - The Mexican and Colombian pesos rose on
Friday as oil prices rose, while Peru's sol hit all-time lows
and marked its worst week ever on concerns over a likely
socialist presidency.
    Peru's sol fell 0.8%, taking losses this week to 4%. 
    The currency has lost for the past six sessions, as a series
of polls showed socialist presidential front-runner Pedro
Castillo keeping his lead over right-wing rival Keiko Fujimori.

    Castillo on Thursday sought assuage market fears, assuring
he would not nationalize companies and would honor the rule of
law.
    Mexico's peso climbed about 0.6%, hovering around
three month highs, while Colombia's peso firmed 0.2%, as
crude prices rose on hope of a global economic recovery fuelling
demand.
    Mexico's currency was set for a fourth straight week of
gains, after higher-than-expected inflation data this week
suggested that the central bank would keep rates on hold for
longer.  
    "With the U.S. economy quite far along on the re-opening
side, a lot may already be in the price. We expect a catch up on
reopening outside of the U.S., which should be EMFX positive,"
Citi analysts wrote in a note.
    "While a tapering announcement remains a risk, the timing is
unclear. We are tactically short USD in Latam and to a lesser
extent more positive on duration."
    Rating agencies Fitch and S&P on Thursday warned of
Colombia's public finances, saying recovery was dependent on a
rise in income, whether via a proposed new tax law or by
improving collection of current taxes.
    Brazil's real fell 0.7% on Friday, but was the
best weekly performer across the region, up about 1.7%, as a
revised and delayed 2021 federal budget was signed into law,
improving sentiment.
    The passage of the budget, President Jair Bolsonaro's pledge
to double funding for environmental enforcement efforts, and the
cooling of U.S. Treasury yields have supported the real currency
in recent days, said analysts at Genial Investimentos in a
note.
    But Latam's largest economy has been hit the hardest in the
region by the pandemic, with investors on edge over strained
government finances.
    
    Key Latin American stock indexes and currencies:
  Stock indexes           Latest   Daily %
                                   change
 MSCI Emerging Markets    1353.93     0.93
                                   
 MSCI LatAm               2419.13     0.74
                                   
 Brazil Bovespa         120309.01     0.79
                                   
 Mexico IPC              49180.42     0.18
                                   
 Chile IPSA               4841.84    -0.05
                                   
 Argentina MerVal        47366.37    0.517
                                   
 Colombia COLCAP          1287.69    -0.65
                                   
                                          
      Currencies          Latest   Daily %
                                   change
 Brazil real               5.4910    -0.66
                                   
 Mexico peso              19.8287     0.43
                                   
 Chile peso                 711.7    -0.77
                                   
 Colombia peso            3626.56     0.20
                                   
 Peru sol                   3.787    -0.85
                                   
 Argentina peso           93.1200    -0.04
 (interbank)                       
                                   
 
 (Reporting by Ambar Warrick and Susan Mathew in Bengaluru and
Luana Maria Benedito in Sao Paulo; Editing by Kirsten Donovan
and Chizu Nomiyama)
  
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