REFILE-EMERGING MARKETS-Latam currencies succumb to dollar rally; Peruvian sol outperforms

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 (Corrects to say "Tuesday" in first paragraph)
    By Susan Mathew
    Nov 16 (Businesshala) - Most Latin American currencies fell
against a strong dollar on Tuesday, with Chile's peso sinking
more than 1% ahead of weekend elections and on sliding copper
prices, while Peru's sol extended gains made on growth exceeding
central bank targets. 
    Top copper exporter Chile's currency fell 1.3% to
lead losses among regional peers.
    Eyes are also on weekend presidential elections in the
country with far-right front-runner Jose Antonio Kast making a
rapid surge in opinion polls. The most likely outcome is a split
vote with main rival Gabriel Boric, leading to run-off in
December.
    Peru's sol rose 0.2%, extending gains after data
showed the economy grew 9.71% year-on-year in September,
slightly above a recent central bank projection, but its slowest
pace of expansion since March as it recovers from the COVID-19
pandemic.
    "If output levels were to remain at the September level in
the balance of the year, then real GDP would expand 13.8% in
2021, higher than the 11.9% median growth expectation as per the
latest central bank survey," said Credit Suisse analyst Alberto
Rojas, revising 2021 real GDP growth forecast to 13.4% from a
previous expectation of 12.0%. 
    Most other emerging market currencies intensified losses as
the dollar renewed 16-month highs bolstered by
better-than-expected U.S. retail sales data strengthening the
case for faster monetary policy tightening.  
    MSCI's index of EM currencies was set for
its worst session in seven weeks, with Turkey's lira
hitting new lows of 10.249 per dollar, while tensions with the
West over Ukraine and Belarus saw Russia's rouble sink
more than 1% to two-month lows. 
    Sentiment had been upbeat earlier in the day after a
positive start in talks between the United States and China had
raised hopes of easing tensions and possibly reducing tariffs. 
    Brazil's real gave up early gains to trade 0.4% lower
on returning from a day's holiday. 
    Data on Tuesday showed surging inflation and higher interest
rates had started to choke economic activity in Brazil. The
IBC-Br economic activity index, a leading indicator of gross
domestic product, fell by 0.27% in September from the previous
month.
    Latam stocks fell, underperforming a broader index of EM
shares. Chile's benchmark index slumped
0.8%, extending losses to a third straight session.  
   
    Key Latin American stock indexes and currencies at 1432 GMT:
    Stock indexes             Latest    Daily %
                                         change
 MSCI Emerging Markets         1291.40      0.36
                                        
 MSCI LatAm                    2155.34     -0.97
                                        
 Brazil Bovespa              105430.97     -0.85
                                        
 Mexico IPC                          -         -
                                        
 Chile IPSA                    4345.94     -0.83
                                        
 Argentina MerVal             92724.04    -0.296
                                        
 Colombia COLCAP               1353.48     -0.22
                                        
                                                
       Currencies             Latest    Daily %
                                         change
 Brazil real                    5.4780     -0.40
                                        
 Mexico peso                   20.7330     -0.63
                                        
 Chile peso                      807.2     -1.05
                                        
 Colombia peso                 3909.53     -0.70
 Peru sol                       3.9881     -0.16
                                        
 Argentina peso               100.3200     -0.03
 (interbank)                            
                                        
 

 (Reporting by Susan Mathew in Bengaluru; Editing by Nick
Macfie)
  
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