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EMERGING MARKETS-Latam FX weakens again on virus concerns

    * Argentine peso extends losses on wider fiscal deficit
    * Mexico's peso cuts monthly gains 

    Dec 22 (Reuters) - Most Latin American currencies weakened
again on Tuesday as a new fast-spreading strain of the
coronavirus that broke out in the United Kingdom raised fears
about further damage to the global economy.   
    The Mexican peso and the Colombian peso slid
as oil prices dropped towards $50 a barrel on fears the latest
restrictions will dent fuel demand. Oil is a top export of the
countries.
    Strict lockdowns went into effect in Britain on Monday to
curb the spread of the new strain of the virus, said to be up to
70% more transmissible. It triggered border bans and travel
restrictions from several countries.
    Brazil's real lagged the most as fears about the
virus drove investors to the safety of the dollar. Chile's peso
 also dropped 0.3%, tracking weakness in copper prices.
       
    However, stock markets in the region rebounded, with
Washington's approval of an $892 billion pandemic relief package
helping them recover some of Monday's losses.
    An index of Latin American stocks rose 0.7%,
with indexes in Sao Paulo and Santiago leading
gains.
    The U.S. Congress approved an $892 billion coronavirus aid
package, throwing a lifeline to the nation's pandemic-battered
economy after months of inaction, while also keeping the federal
government funded.
    The Argentine peso dropped 0.3% further breaching its
record low in the previous session after it reported a wider
fiscal deficit in November.
    
    Key Latin American stock indexes and currencies:
    
                                       Latest       Daily %
                                                     change
 MSCI Emerging Markets                    1249.39       -0.61
 MSCI LatAm                               2409.59        0.41
 Brazil Bovespa                         116252.27        0.37
 Mexico IPC                              43055.14       -0.44
 Chile IPSA                               4229.12        1.59
 Argentina MerVal                        50765.53       1.207
 Colombia COLCAP                          1392.08        1.07 Currencies                  Latest       Daily %
                                                     change
 Brazil real                               5.1593       -0.72
 Mexico peso                              20.0630       -0.61
 Chile peso                                 727.4       -0.21
 Colombia peso                             3440.6       -0.34
 Peru sol                                  3.6157       -0.30
 Argentina peso (interbank)               83.2400       -0.11
                                                   
 

 (Reporting by Shashank Nayar in Bengaluru)
  
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