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EMERGING MARKETS-Colombian peso tumbles, Brazil's real supported by tight policy

    * Brazil's real near 1-year high
    * Latam stocks hit two-week low
    * Chile's peso at near three-month low

 (Adds details on stocks, updates prices)
    By Susan Mathew and Ambar Warrick
    June 17 (Reuters) - Colombia's peso led Latin American
currency losses on Thursday, dropping 1.5% on a combination of
dollar strength and weaker oil prices, while policy tightening
expectations allowed Brazil's real to hold near one-year highs.
    The dollar, powered by the U.S. Federal Reserve's hawkish
surprise on Wednesday, weighed on most emerging currencies while
commodity exporters such as Colombia were also undermined by
oil's 0.6% pullback.
    Colombia, which has seen political unrest in recent weeks
and several bombings attributed to leftist guerillas, saw its
peso touch three-week lows. A Wednesday bombing injured a
Colombian soldier and two U.S. military personnel
    Crude exporter Mexico's peso touched an 11-week low,
down 0.2%.
    Chile's peso fell to a near three-month low of
738.50, rattled by a sharp drop in the prices of copper - the
country's largest export. 
    World no. 2 copper producer Peru's sol also dropped
0.4%.
    Brazil's real was the outlier, firming 0.6% and
holding just below one-year highs on expectations of more
central bank policy tightening. The central bank on Wednesday
raised the Selic interest rate by 75 basis points to 4.25% and
dropped plans for a "partial" normalization of policy.

    The "comments represent a more hawkish tone in comparison to
the previous document and to market expectations. It indicates
that the Central Bank could increase rates higher than the
current median market expectations," Credit Suisse analysts told
clients, predicting four consecutive hikes of 75 basis points,
taking rates to 7.25% by December. 
    That's a more aggressive call than the 6% rate forecast by a
Reuters poll conducted before Wednesday's decision.
    On equities, Brazilian power utility Eletrobras
sank 3.6%, with a reformed bill for its privatization to be
voted on in the Senate on Thursday.
    Latam stocks fell in tandem with emerging markets, with the
MSCI's index of regional stocks down 1.5% to a
more-than two-week low.
    Emerging market debt also suffered losses, as a rise in U.S.
yields narrowed the gap between risky and risk-free debt.
    Key Latin American stock indexes and currencies:
    
                              Latest     Daily % change
 MSCI Emerging Markets         1361.19              -0.64
                                        
 MSCI LatAm                    2611.22              -1.48
                                        
 Brazil Bovespa              128098.73               -0.9
                                        
 Mexico IPC                   50163.61              -0.82
                                        
 Chile IPSA                    4330.51               -0.6
                                        
 Argentina MerVal             66450.68             -1.665
                                        
 Colombia COLCAP               1251.42               0.05 Currencies             Latest     Daily % change
 Brazil real                    5.0253               0.60
                                        
 Mexico peso                   20.4354              -0.16
                                        
 Chile peso                      737.8              -1.10
                                        
 Colombia peso                    3726              -1.46
 Peru sol                       3.9158              -0.39
                                        
 Argentina peso                95.3500              -0.03
 (interbank)                            
                                        
 
 

 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru;
Editing by Raissa Kasolowsky and Andrew Heavens)
  
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