Chile peso closes at 10-month low, stocks mixed

SANTIAGO, June 30 (Reuters) - Chile's peso closed at a 10-month low on Monday after surprisingly weak industrial output data left less room for an additional central bank interest rate hike this month.

Stocks were mixed in cautious trade as investors waited for government inflation figures later this week.

The peso <CLP=CL> weakened 0.72 percent to 525.00/525.50 per dollar from Friday's close at 521.20/521.50. The peso is now down more than 5 percent this year.

Chile's National Statistics Institute (INE) said on Monday May industrial output fell 2.4 percent year-on-year, sharply below the median forecast of five economists polled by Reuters, who had expected a rise of 3.2 percent.

The central bank also continued its daily dollar purchases of $50 million on the currency exchange as part of an $8 billion intervention begun in April to curb the strength of the peso after the dollar fell to 430 pesos in March.

On the Santiago Stock Exchange, the all-market IGPA index .IGPA edged up 0.01 percent to 14,730 points, while the blue-chip IPSA index .IPSA fell 0.02 percent to 3,024 points.

"Investors in general are cautious and a bit fearful of what might happen," said Andres Roman, trading desk manager with the BICE brokerage.

"Some are getting out of the market because they want to see what's going to happen with inflation and how it's going to be affected by oil prices," Roman said.

Crude oil prices hit new record highs on Monday, and runaway fuel prices are one of the key components in energy-poor Chile's sharply higher inflation. The government is scheduled to report June inflation figures on Thursday.