EMERGING MARKETS-LatAm currencies seesaw after ECB prepares to end stimulus

BRASILIA, June 14 (Reuters) - Latin American currencies seesawed on Thursday after the European Central Bank announced it will end its bond purchasing scheme by year-end, removing a key source of liquidity from global markets. The announcement, which makes the ECB the latest central bank in developed economies to take steps to move away from stimulus measures introduced to recover from the global financial crisis, weighed on demand for emerging market assets.

Yet the ECB's assurance that any interest rate hike is still distant prevented any major selling off. Currencies from Mexico, Chile and Colombia dipped between 0.1 percent and 0.4 percent. The Brazilian real, however, firmed 0.3 percent, supported by the central bank's reinforced intervention. The bank has increased sales of traditional currency swaps, which function like future dollar sales, after concerns over a widening fiscal deficit and accelerating inflation in the United States as well as Brazilian presidential elections later this year drove a currency selloff. Analysts told Reuters that the central bank is unlikely to keep the increased intervention past Friday. "The bank has to save ammunition for the elections," H.Commcor brokerage trader Cleber Alessie said.

Key Latin American stock indexes and currencies at 1610 GMT:

Stock indexes Latest Daily YTD pct pct change


MSCI Emerging Markets 1,125.98 -0.85 -1.97 MSCI LatAm 2,494.43 0.08 -11.87 Brazil Bovespa 72,068.24 -0.07 -5.67 Mexico IPC 47,068.17 0.66 -4.63 Chile IPSA 5,532.96 -0.02 -0.57 Chile IGPA 27,941.22 -0.01 -0.14 Argentina MerVal 30,486.13 0.85 1.40 Colombia IGBC 12,314.19 0.11 8.30 Currencies Latest Daily YTD pct pct change


Brazil real 3.7017 0.31 -10.49 Mexico peso 20.6775 -0.18 -4.73 Chile peso 634.5 -0.36 -3.13 Colombia peso 2,860.5 -0.10 4.25 Peru sol 3.264 0.25 -0.83 Argentina peso (interbank) 27.1700 -2.83 -31.54 Argentina peso (parallel) 27.2 -2.21 -29.30

(Reporting by Bruno Federowski and Claudia Violente; editing by G Crosse)