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EMERGING MARKETS-Latam FX weaken against firm dollar, Peru's sol bounces from lows

    * Brazilian real reverses early gains 
    * Peruvian sol rises more than 1% 
    * Chilean peso falls as copper drops

 (Adds market analyst's comments, updates prices throughout)
    By Shreyashi Sanyal and Susan Mathew
    June 9 (Reuters) - Most Latin American currencies edged
lower by afternoon trading on Wednesday as the dollar regained
footing ahead of U.S. inflation data later in the week, while
Peru's sol bounced from record lows amid a tight presidential
election.  
    Brazil's real fell 0.6% after firming as much as
0.3%. Annual inflation came in above expectations, hitting 8%
for the first time in four years and making a stronger case for
an interest rate hike by Brazil's monetary policy committee,
Copom. 
    "Copom will (also) probably signal that another 75 basis
point hike is on the cards at the subsequent meeting in August,"
said William Jackson, chief EM economist at Capital Economics.
    The central bank is due to meet next week and Capital
Economics and Citi expect it to hike by 75 basis points to
4.25%. 
    Peru's currency jumped 2.3%. Vote counting after a
presidential election over the weekend is almost drawing to a
close with socialist Pedro Castillo leading over rival Keiko
Fujimori.
    Right-wing conservative Fujimori is expected to find support
from overseas votes, and with some ballots being contested, the
results may take time to be declared. 
    "We have noted that as the votes cast abroad are accounted
for, it is likely that the difference between Pedro Castillo and
Keiko Fujimori will narrow," said Credit Suisse analyst Alberto
Rojas. 
    "We think that it could take several days until we know who
won the second round presidential election."
    Losses for the sol currency now stand at 8% since Castillo's
surprise win in the first round vote in April. 
    The dollar firmed with all eyes now on U.S. inflation
numbers and the European Central Bank's meeting on Thursday to
see if major central banks will start the withdrawal process for
pandemic- induced stimulus.
    In Mexico, inflation rose again in May, but the central bank
will likely stand pat on interest rates as long as core
inflation falls back in the next few months, Jackson at Capital
Economics said.  
    Mexico's peso edged 0.2% lower, snapping a three-day
winning streak but remained close to its 2021 highs hit in
January. 
    The currency has turned positive for the year, following a
rally spurred by mid-term election results that lessened the
likelihood of sweeping changes to market friendly policies.
    Chile's peso inched 0.2% lower after a dip in prices
of copper, its main export. Chile's central bank late on Tuesday
kept interest rates unchanged at 0.5%, in line with
expectations. 
    
    Latin American stock indexes and currencies at 1846 GMT; 
    
        Stock indexes                Latest    Daily %
                                               change
 MSCI Emerging Markets                1372.80    -0.34
 MSCI LatAm                           2668.34    -0.14
 Brazil Bovespa                     130423.34     0.49
 Mexico IPC                          50916.40      0.1
 Chile IPSA                           4228.13     1.34
 Argentina MerVal                    68128.53    2.618
 Colombia COLCAP                      1259.11     0.04
                                                      
           Currencies                Latest    Daily %
                                               change
 Brazil real                           5.0661    -0.63
 Mexico peso                          19.7430    -0.25
 Chile peso                             720.6    -0.37
 Colombia peso                        3586.93     0.15
 Peru sol                              3.8358     2.32
 Argentina peso (interbank)           95.0500    -0.03
                                               
 Argentina peso (parallel)                153     1.96
                                               
 
    
    
    

 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Editing by Emelia Sithole-Matarise and Grant McCool)
  
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