EMERGING MARKETS-Brazil's real hits one-year high on hawkish central bank minutes

    * Next Brazilian rate hike could be 100 bps
    * Dollar retreats as Powell speaks
    * Latam stocks retreat

 (Adds graphic, updates prices)
    By Susan Mathew and Ambar Warrick
    June 22 (Reuters) - Brazil's real hit a one-year high as
minutes of the central bank's recent meeting suggested a more
hawkish stance than previously thought, while Chile's and
Mexico's pesos rose as commodity prices stabilized from recent
    The real surged nearly 1% to a one-year high
of 4.970, as central bank minutes showed a 100-basis point hike
could be coming at the next meeting to keep inflation in check. 
    This would be the monetary authority's fourth straight hike,
and would put rates at 5.25%, their highest since October 2019,
well before the COVID-19 pandemic spurred a cutting cycle. 

    Liam Spillane, head of EM debt at Aviva Investors, said in
an interview he sees an upside in Brazil's real and said its
recent outperformance can continue at this level as central bank
policy should support the currency in coming months. 
    The dollar retreated after Federal Reserve Chair Jerome
Powell flagged weakness in the job market, which is likely to
keep the Fed from hiking rates anytime soon. He also expressed
his confidence in inflation remaining transitory.
    Powell's comments somewhat soothed emerging markets, which
had come under pressure from the Fed's hawkish tilt last week.
    Chile's peso rose 0.5% as copper prices rose from a
10-week trough, while Mexico's peso added 0.7% after oil
prices rallied on expectations of recovering demand.

    On Thursday, Mexico's June first-half inflation followed by
a central bank meeting, will be in focus. A Reuters poll showed
annual inflation likely slowed but still stayed well above the
central bank's target range, reinforcing forecasts that
benchmark interest rate will remain on hold for the rest of
    Among stocks, Latin America's biggest power utility
Eletrobras hit record highs before retreating, after
a Lower House approval of a bill for its long-pending
privatization left just one step more - the president's
signature - for its implementation.
    The privatization will be the biggest in Brazil's history,
with proceeds from the sale potentially reaching 100 billion
reais ($20 billion), the Economy Ministry said on Tuesday.

    Brazil's Bovespa index lost 1% to hit one-month
lows, led by financials. Most other regional peers also fell,
tracking a choppy session on Wall Street.
    Cryptocurrencies have recently gained traction among some
countries in the region. While El Salvador last week announced
plans to use bitcoin as a parallel legal tender alongside the
U.S. dollar, in Venezuela, cryptos are traded by a service that
helps non-residents send remittances. 
    Key Latin American stock indexes and currencies:
                              Latest     Daily % change
 MSCI Emerging Markets         1348.06              -0.18
 MSCI LatAm                    2644.50               0.99
 Brazil Bovespa              128319.80              -0.73
 Mexico IPC                   50007.69              -0.61
 Chile IPSA                    4368.05               1.69
 Argentina MerVal             65394.98              0.398
 Colombia COLCAP               1247.30               0.07 Currencies             Latest     Daily % change
 Brazil real                    4.9745               0.95
 Mexico peso                   20.3653               0.54
 Chile peso                      742.1               0.66
 Colombia peso                  3779.1              -0.58
 Peru sol                       3.9787              -0.68
 Argentina peso                95.4900              -0.12
 (Reporting by Susan Mathew and Ambar Warrick in Bengaluru;
additional reporting by Karin Strohecker in London, Editing by
William Maclean)