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EMERGING MARKETS-Economic growth helps Peru's sol brave post-election jitters

    * Sol recovers after falling 1%
    * Brazil's real gains ahead of c.bank meet
    * Chile's peso tumbles on copper meltdown 

 (Recasts, updates prices)
    By Susan Mathew and Ambar Warrick
    June 15 (Reuters) - Peru's sol currency recovered early
losses on Tuesday after strong economic data offset uncertainty
over the country's next president, while neighboring Chile's
peso weakened as copper prices touched seven-week lows.
    The sol rose 0.3% after data showed Peru's economy
grew by a staggering 58.5% in April, driven by a rebound in key
mining and fishing sectors, as well as a low basis for
comparison from last year, due to the COVID-19 pandemic.
 
    The currency had fallen as much as 1% earlier as investors
awaited the results of the recent presidential election, with
socialist Pedro Castillo clinging to a narrow lead that would
tilt the country firmly to the left. That has prompted many 
urban elites to take money abroad.
    "At this moment the market is still vulnerable to the new
rhetoric and policies that are coming from the (potential) new
left-wing president," said BCA's chief emerging market
strategist Arthur Budaghyan.
    "But still there is a very powerful congress in Peru," he
said, highlighting that the last two Peruvian presidents had
been impeached. "There will certainly be a left-wing bias in
(Peruvian politics), but most major policies will probably be
blocked."
    Peru local currency debt was the worst performer on Monday,
with yields rising an average 15 basis points on the day,
according to JPMorgan's GBI-EM index. 
    The Chilean peso fell 1.1% to a two-week low as the
prices of copper, the country's top export, retreated on fears
of price curbs by major consumer China. 
    An extension of restrictions to curb the spread of COVID-19
in Chile also weighed on sentiment.
    Meanwhile the dollar touched a one-month high on the
eve of the U.S. Federal Reserve's policy decision, weighing on
most emerging market currencies. 
    Investors are seeking clues on whether the Fed has begun
discussing tapering bond purchases and if policymakers are
concerned about rising inflation, both of which can cause a
flight away from emerging markets to safe havens. 
    Brazil's real rose 0.6% ahead of a widely expected 75
basis-point interest rate hike by the central bank on Wednesday.
    In Suriname, a majority of bondholders have triggered a
termination clause on the South American country's 2023 and 2026
notes, a creditor committee said on Monday. 
    Suriname's 2026 bond was quoted at 61.5 cents
on the dollar, down from 71 at the close on June 1, the day
before Suriname's haircut proposal.
    Colombia's peso tumbled more than 1% in catch-up
trade, after a long weekend.
    
    Key Latin American stock indexes and currencies:
    
                              Latest      Daily % change
 MSCI Emerging Markets         1378.44               -0.34
                                        
 MSCI LatAm                    2664.05               -0.22
                                        
 Brazil Bovespa              130022.12               -0.14
                                        
 Mexico IPC                   50844.13               -0.36
                                        
 Chile IPSA                    4378.62                0.78
                                        
 Argentina MerVal             66278.49              -0.835
                                        
 Colombia COLCAP               1252.52               -0.72 Currencies             Latest      Daily % change
 Brazil real                    5.0433                0.55
                                        
 Mexico peso                   20.0622               -0.57
                                        
 Chile peso                     726.54               -1.06
                                        
 Colombia peso                 3695.75               -1.18
 Peru sol                       3.8798                0.28
                                        
 Argentina peso                95.2800               -0.02
 (interbank)                            
                                        
 
    
 (Reporting by Susan Mathew in Bengaluru, Marc Jones in London;
Editing by Sujata Rao-Coverley, Jan Harvey and Sonya Hepinstall)
  
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