EMERGING MARKETS-Brazil real rises ahead of c.bank move, Latam peers also higher
*Brazil's central bank seen hiking by 50 bps *Chile ,Peru , Colombia FX rise on commodity boost *Brazil airlines rise as Bolsonaro vetoes free checked bags * Big Fed 75 bps rate hike eyed later in the day By Shreyashi SanyalJune 15 (Reuters) -Brazil's real rose on Wednesday as its central bank approached what many expect to be the end of its tightening cycle, while most other currencies in resource-richLatin America rose on higher commodity prices. The real shed 0.1%, fluctuating between a range of 5 and 5.1 against the dollar ahead of an expected 50 basis points rate increase by the Brazilian Central Bank, which could finalize its long tightening cycle. A Reuters poll said the central bank would leave the Selic benchmark rate at 13.25%, one of the highest in the world. Even as recent readings show an easing in price pressures inBrazil , analysts say continued supply chain issues and high commodity prices could allow the BCB to leave its door open for further hikes. "If the BCB were to sound too dovish today, depreciation pressure on the real is likely to rise. It will probably not want to risk that," said You-Na Park-Heger, FX and emerging markets analyst at Commerzbank. "Even in case of a hawkish BCB rate decision it is questionable whether BRL would be able to benefit at all as the action is elsewhere with the U.S. central bank's meeting being held today." The U.S. Federal Reserve is expected to go big on hiking interest rates. Markets are almost fully pricing in a 75 basis point hike by the Fed, up from 8.2% a week ago, according to CME's FedWatch Tool, boosting the dollar but pressuring broader emerging market assets. However, Latin American markets attempted a recovery from steep falls earlier in the week. The MSCI's index for equities in the region shot up 1.4%, with heavyweightSao Paulo stocks leading gains.Brazil's Natura & Co Holding SA (NTCO) jumped 10% after it said Chief Executive and Executive ChairmanRoberto Marques was stepping down in a shakeup, handing over the reins of the cosmetics maker to board memberFabio Barbosa . Brazilian airlines Gol Linhas Aereas Inteligentes SA (GOL) and Azul SA rose over 5% each after PresidentJair Bolsonaro vetoed a Congress-passed measure that would block airlines from charging for checked baggage on flights. Currencies of top copper producers,Chile andPeru , edged higher as prices of the red metal bounced on upbeatChina factory.Colombia's peso gained over 1% on higher oil prices and as its Finance Ministry on Tuesday revised upward its 2022 gross domestic product growth and inflation estimates. Key Latin American stock indexes and currencies at1424 GMT : Stock indexes Latest Daily % change MSCI Emerging Markets 1020.08 0.22 MSCI LatAm 2162.90 1.19 Brazil Bovespa 103902.78 1.8 Mexico IPC 48451.49 0.6 Chile IPSA 5148.44 0.53 Argentina MerVal 88611.85 1.387 Colombia COLCAP 1496.12 -0.34 Currencies Latest Daily % change Brazil real 5.1149 0.35 Mexico peso 20.6605 -0.39 Chile peso 867.4 0.07 Colombia peso 3921.6 0.97 Peru sol 3.7521 -0.19 Argentina peso (interbank) 122.6800 -0.13 Argentina peso (parallel) 218 2.75 (Reporting by Shreyashi Sanyal in Bengaluru; editing byCarmel Crimmins )