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EMERGING MARKETS-Latin American currencies rise amid global dollar weakness

SAO PAULO, Sept 22 (Reuters) - Latin American currencies strengthened on Friday as a global decline in the U.S. dollar triggered a technical correction in emerging markets. Traders, however, said the upswing was unlikely to be extended in the coming days, amid speculation that the Federal Reserve will raise interest rates once more this year and escalating geopolitical tensions tied to North Korea. Currencies from Brazil, Mexico and Colombia strengthened between 0.4 percent and 0.7 percent, rebounding from the previous day's losses. The move came as the dollar weakened against most developed currencies after North Korea said it might test a hydrogen bomb over the Pacific Ocean following threats by U.S. President Donald Trump to destroy the country. Most emerging market currencies were still headed for weekly losses, two days after the Fed hinted that it could hike rates in December, potentially draining capital away from high-yielding assets. Brazil's benchmark Bovespa stock index slipped 0.3 percent, dragged down by shares of miner Vale SA in the wake of falling iron ore futures. Shares of Rumo SA rose by the most in almost two months on news that the logistics operator plans to sell as much as 2.63 billion reais ($841 million) in new shares to cut debt.

Diversified retailer Carrefour Brasil SA, which is not part of the benchmark index, marked its biggest loss since going public in July after it unexpectedly replaced Chief Executive Charles Desmartis with a 33-year veteran of parent Carrefour SA.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD % change change

Latest

MSCI Emerging Markets 1102.45 -0.52 28.52 MSCI LatAm 2984.78 0.2 27.27 Brazil Bovespa 75389.16 -0.28 25.17 Mexico S&P/BVM IPC 50423.57 -0.24 10.47 Chile IPSA 5288.97 0.02 27.40 Chile IGPA 26403.55 0.04 27.34 Argentina MerVal 24959.05 1.55 47.53 Colombia IGBC 11118.79 0.39 9.78 Venezuela IBC 422906.19 -0.69 1233.87 Currencies daily % YTD % change change

Latest

Brazil real 3.1277 0.51 3.88 Mexico peso 17.7460 0.77 16.89 Chile peso 624.55 -0.07 7.39 Colombia peso 2901.35 0.44 3.45 Peru sol 3.247 0.03 5.14 Argentina peso (interbank) 17.2900 -0.12 -8.18 Argentina peso (parallel) 17.89 0.34 -5.98

(Reporting by Bruno Federowski; Editing by Paul Simao)