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EMERGING MARKETS-Chilean peso leads Latam FX losses as copper prices plunge

    * Peru's sol near record low
    * Mexican, Chilean pesos worst weekly performers 
    * Brazil's real sole weekly gainer

 (Recasts with Chilean peso, updates prices)
    By Susan Mathew and Ambar Warrick
    June 18 (Reuters) - Chile's peso slipped to its lowest level
this year, while Mexico's currency hit a 13-week low as hawkish
comments from a Federal Reserve official pushed up the dollar
and hit commodity markets. 
    The Chilean peso slumped 1.4%, leading losses across
Latin America as copper prices headed for their worst week since
March 2020. Concerns over Chinese caps on prices also weighed on
prices.
    World no.2 copper producer Peru's sol also slipped
0.9% after hitting a record low of 3.9826 on Thursday, as
investors awaited the results of the country's hotly contested
presidential elections. 
    Mexico's peso fell 0.9% and extended losses to a
sixth straight session - its longest such streak since February.
It is set to post its worst week in nine months, and was also
the worst performing Latam currency this week along with the
Chilean peso, with both units set for a 3.6% loss. 
    The dollar rally got a new lease on life after Federal
Reserve official James Bullard said inflation was stronger than
anticipated and saw rate increases beginning next year to
contain inflation.
    That, combined with investors positioning for Mexico's
central bank meeting next week, was pressuring the peso, said
Wilson Ferrarezi, an economist at TS Lombard. 
    Ferrarezi said the Mexican central bank "has been, in
relative terms, less hawkish than for instance Brazil's Banco
Central. They seem to see the inflationary pressures in Mexico
as largely transitory."
    Brazil's central bank this week sent a strongly hawkish
message, pushing the real to one-year highs. On Friday
the currency fell 0.8%, but was still the only EM currency among
major peers across the board set to mark gains this week. 
    Declining oil prices also weighed on the Mexican peso as
well as on fellow crude exporter Colombia's currency,
which lost 1.1%
    Most main stock indexes in Latam slipped, with the MSCI's
index of regional stocks falling 0.8%, tracking
similar falls on Wall Street indexes. 
    But Brazil's Bovespa was supported by power utility
Eletrobras, shares in which surged as much as 10%
after a bill on its long-pending privatisation was approved by
the Senate overnight.
    Average yields on Latin American local currency bonds have
risen 13 basis points in June as of Thursday's close, compared
to a 5 bps rise across all emerging markets, according to data
from JPMorgan's GBI-EM index.    
          
    Key Latin American stock indexes and currencies:
    
                              Latest     Daily % change
 MSCI Emerging Markets         1359.69             -0.23
                                        
 MSCI LatAm                    2592.78             -0.82
                                        
 Brazil Bovespa              128390.52              0.26
                                        
 Mexico IPC                   50326.90              0.25
                                        
 Chile IPSA                    4290.04             -0.93
                                        
 Argentina MerVal             65252.09            -1.788
                                        
 Colombia COLCAP               1248.93              0.01 Currencies             Latest     Daily % change
 Brazil real                    5.0644             -0.79
                                        
 Mexico peso                   20.5920             -0.87
                                        
 Chile peso                     748.05             -1.36
                                        
 Colombia peso                    3766             -1.06
 Peru sol                       3.9498             -0.86
                                        
 Argentina peso                95.3700              0.00
 (interbank)                            
                                        
 
 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru;
Editing by Sujata Rao, Alistair Bell and Giles Elgood)
  
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