EMERGING MARKETS-Chilean peso falls 2%, lower copper prices and stronger dollar weigh

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    * Erdogan says he will keep battling interest rates, lira
slides
    * Chile's peso leads declines among Latin American
currencies
    * Brazil government cuts GDP forecasts, raises inflation
outlook

 (Adds comments, updates prices throughout)
    By Shreyashi Sanyal
    Nov 17 (Businesshala) - The Chilean peso weakened on Wednesday as
a dollar rally slammed prices of copper ahead of presidential
elections this weekend, while Turkey's lira touched new lows
after President Tayyip Erdogan's pledge to keep interest rates
low.  
    MSCI's broader EM index struggled for
direction as the dollar continued to strengthen after solid
retail sales data from the United States spurred bets of a
sooner-than-expected interest rate hike there.
    A 2% fall in Chile's peso led losses among Latin
American currencies, dropping for the second straight session
after prices for its No.1 export, copper, fell.
    In political news, Chile's Senate voted against removing
President Sebastian Pinera from office on Tuesday, ending an
impeachment process that had successfully passed a lower house
vote last week over alleged irregularities in the sale of a
mining company.
    Chileans are now gearing up to vote in presidential
elections on Sunday, in which Pinera is not a candidate.
    "Chile's peso has suffered, not only at the hands of
politics but also from the decision to allow residents to tap
their private pension pots - selling $50 billion worth of
assets," said  Chris Turner, global head of markets and regional
head of research for UK & CEE at ING.
    Turkey's lira fell 2.6% to touch new record lows
against a stronger dollar as Erdogan said he will continue his
battle against interest rates "to the end", a day ahead of a
central bank policy meeting at which it is expected to cut
again.
    "At this pace, currency weakness and FX reserves depletion
will become unsustainable. We soon expect the (central bank) to
go into full reverse gear in order to halt the lira's collapse,"
said Cristian Maggio, head of portfolio strategy at TD
Securities. 
    Erdogan has had influence over monetary policy in the past,
with his frequent calls for stimulus and his rapid overhaul of
the central bank's leadership.             
    Latin American currencies were trading in a narrow range
after sharp declines in the previous session, with MSCI's index
for Latam FX edging 0.2% lower. 
    Brazil's real fell 0.5% after the country's
economy ministry cut its forecasts for GDP growth this and next
year, while it raised its outlook for inflation, showing some
economic deterioration on its radar.
    Colombia's peso weakened 0.6%, down for the sixth
straight session even as data from the previous day showed its
economy grew 13.2% in the third quarter of 2021 compared with
the year-earlier period, higher than analysts expectations.

    Key Latin American stock indexes and currencies at 1912 GMT:
  
    
         Stock indexes                 Latest    Daily %
                                                 change
 MSCI Emerging Markets                  1286.23    -0.33
 MSCI LatAm                             2107.19    -1.09
 Brazil Bovespa                       102794.65    -1.54
 Mexico IPC                            50883.73    -0.54
 Chile IPSA                             4293.57    -0.26
 Argentina MerVal                      86990.48   -2.993
 Colombia COLCAP                        1319.33    -1.06
                                                        
            Currencies                 Latest    Daily %
                                                 change
 Brazil real                             5.5232    -0.48
 Mexico peso                            20.6595     0.30
 Chile peso                               825.5    -1.73
 Colombia peso                          3915.67    -0.59
 Peru sol                                4.0043    -0.47
 Argentina peso (interbank)            100.3400    -0.03
                                                 
 Argentina peso (parallel)                198.5     1.01
                                                 
  
    

 (Reporting by Shreyashi Sanyal and Susan Mathew in Bengaluru
Editing by Alistair Bell, Kirsten Donovan)
  
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