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EMERGING MARKETS-Latam FX up on vaccine optimism, Chile's peso breaks 4-day losing streak

    * Chilean peso up after central bank leaves rates unchanged
    * Argentina central bank lowers Leliq rate to 36%
    * Mexican peso outperforms Latam peers for the week

 (Updates prices throughout)
    By Shreyashi Sanyal
    Oct 16 (Reuters) - Latin American currencies rose on Friday
after Pfizer Inc said it could apply for U.S.
authorization of its COVID-19 vaccine as early as late November,
while Chile's peso rose as its central bank held interest rates
steady in its latest policy meeting.   
    News of Pfizer Inc's vaccine, which the drugmaker is
developing with German partner BioNTech, comes after
global markets were jolted by the halting of two high-profiled
COVID-19 vaccine trials earlier in the week.
    The MSCI's index for Latin American currencies
 rose 0.1% but was headed for a weekly decline of
more than 1%. 
    Chile's peso rose 1%, making gains for the first time
in five day after the country's central bank left its benchmark
rate steady at 0.5% on Thursday, maintaining its efforts to
revive the economy amid the coronavirus pandemic.
    The peso was also supported by strengthening prices of
copper, Chile's biggest export, as demand from China continued
to improve.   
    Mexico's peso added 0.8%, and was set to outpace its
Latam peers for the week. The country's currency has been
benefiting from an economic rebound in the United States, its
main trading partner.    
     The Argentine peso held steady after the central
bank said on Thursday it will lower the benchmark Leliq rate to
36% from the previous level of 37%, while raising the reverse
repo rate three points to 30%, as part of a wider push to
harmonize interest rates.
    "The lack of a clear and comprehensive reaction by the
authorities to the notorious denachoring in expectations is
creating a vicious circle and leading to a fast deterioration in
the economic situation in the country," emerging markers FX
strategists at Citigroup said. 
    Emerging market currencies are also exposed to volatility in
the run-up to the U.S. presidential election in November, with
analysts pointing to a Democratic sweep as the most favorable
outcome for these currencies.  
    The Brazilian real weakened 0.2%, the only
decliner among major currencies in Latin America, as investors
remained doubtful about the government's ability to fund a new
fiscal program without surpassing its spending ceiling.     
    
    Key Latin American stock indexes and currencies:
    
          Stock indexes                   Latest   Daily %
                                                   change
 MSCI Emerging Markets                    1125.75     0.46
 MSCI LatAm                               1905.80     -0.2
 Brazil Bovespa                          98529.00    -0.53
 Mexico IPC                              38093.69     0.09
 Chile IPSA                               3672.36     0.29
 Argentina MerVal                        48998.38    1.574
 Colombia COLCAP                          1169.11     0.27
                                                          
              Currencies                  Latest   Daily %
                                                   change
 Brazil real                               5.6373    -0.27
 Mexico peso                              21.1010     0.82
 Chile peso                                   796     0.90
 Colombia peso                             3846.1     0.06
 Peru sol                                  3.5817    -0.03
 Argentina peso (interbank)               77.5200    -0.05
                                                   
 Argentina peso (parallel)                    174    -1.72
                                                   
 
    
 

 (Reporting by Shreyashi Sanyal in Bengaluru
Editing by Nick Zieminski and Steve Orlofsky)
  
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