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EMERGING MARKETS-LatAm currencies weaken as U.S. dollar rebounds from sell-off

sell-off@ SAO PAULO, Jan 9 (Reuters) - Latin American currencies weakened on Tuesday as the U.S. dollar rebounded from an early 2018 sell-off that drove it to the lowest in more than three months. Emerging market currencies kicked off the year with a rally as solid economic growth figures drove investors away from the greenback and toward riskier assets. That move faded in recent days as expectations that the U.S. Federal Reserve will increase rates three times in 2018, potentially draining funds away from high-yielding assets, grew stronger. Currencies from Brazil, Mexico, Chile and Colombia slipped between 0.2 percent and 0.4 percent on Tuesday. Stock markets were also down across the region on profit-taking, with Brazil's benchmark Bovespa stock index steering away from all-time records. Blue-chips, such as lenders Itaú Unibanco Holding SA and Banco Bradesco SA, and miner Vale SA , led the drop. Shares of Centrais Elétricas Brasileiras SA were among the biggest declines on news that regulators could ask the state-controlled power utility to return 1 billion reais to government coffers due to irregular subsidies.

Key Latin American stock indexes and currencies at 1720 GMT:

Stock indexes daily % YTD %

change change Latest

MSCI Emerging Markets 1204.11 -0.23 4.18 MSCI LatAm 2954.27 -0.92 5.43 Brazil Bovespa 79048.28 -0.42 3.46 Mexico IPC 49680.15 -0.63 0.66 Chile IPSA 5697.36 -0.14 2.39 Chile IGPA 28662.76 -0.12 2.44 Argentina MerVal 32330.61 -0.06 7.53 Colombia IGBC 11827.33 -0.22 4.02 Venezuela IBC 1290.07 1.54 -95.93 Currencies daily % YTD %

change change

Latest

Brazil real 3.2475 -0.37 2.03 Mexico peso 19.2900 -0.34 2.12 Chile peso 608 -0.43 1.09 Colombia peso 2912 -0.20 2.40 Peru sol 3.217 -0.06 0.62 Argentina peso (interbank) 18.9600 0.37 -1.90 Argentina peso (parallel) 19.5 0.41 -1.38

(Reporting by Bruno Federowski; Editing by Tom Brown)