EMERGING MARKETS-Chilean peso hits record low, Czech crown eases after rate hike

       * Chile's Codelco resumes operation despite strike
    * Czech c.bank raises rates by 125-bps
    * Bolsonaro says next CEO will replace Petrobras management

    By Shreyashi Sanyal
    June 22 (Reuters) - Chile's peso hit a record low on
Wednesday after workers at state-owned copper producer Codelco
went on strike, while the Czech crown eased a shade against the
euro after the country's central bank lifted its policy rate.
    The peso was last down 1.5% and touching an all-time
low of 886.90 against a stronger dollar as workers at the
world's largest copper producer protest against the closure of a
smelter located in an area with high levels of
contamination.
    Codelco has resumed operations despite the strike, the
government said.
    Other emerging market currencies were mostly lower, with the
MSCI's index for Latin American units down 0.6%.
    Hurt by a firming greenback, fears of a global recession
amid aggressive tightening cycles by central banks have pushed
investors out of riskier emerging market currencies.
    Market participants cautiously watched Federal Reserve Chair
Jerome Powell's congressional testimony, for clues on whether
another 75 basis-point cut is on the table for the central
bank's meeting in July.
    "Investors will need to see compelling evidence that
inflation is cooling before we see a turnaround in market
sentiment," strategists at UBS wrote in a client note.
    The Czech central bank's board raised its main interest rate
by 125 basis points to 7.00%, extending a year-long policy
tightening drive to battle inflation that has surged to a near
three decade high.
    The Czech crown eased a little after the rate
decision to 24.73 against the euro.
    Emerging markets through the remainder of the week will be
keyed in on more central bank action. Mexico is expected to hike
its benchmark lending rate by 75 basis-points in its meeting on
Thursday. Mexico's peso edged 0.3% higher.
    Among others, Egypt's central bank is also expected to raise
 rates, while the Philippines was set to raise its policy rate
by 25 basis points in its second hike after starting its the
tightening cycle in May. Indonesia will also meeting, is likely
seen holding rates, but will kick off their cycle soon.
    Brazil's real weakened 0.9%, reversing close
to all its gains from the previous session. Sao Paulo stocks
 fell 1.1%, with a 2% decline in shares of oil producer
Petrobras among top drags.
    Brazilian President Jair Bolsonaro said Caio Paes de
Andrade, his pick to be Petrobras' next chief executive, will
replace the company's management when he takes over the
position.
    Key Latin American stock indexes and currencies at 1430 GMT:

          Stock indexes                  Latest   Daily %
                                                  change
 MSCI Emerging Markets                    994.24    -2.24
 MSCI LatAm                              2087.81    -0.73
 Brazil Bovespa                         99133.38    -0.55
 Mexico IPC                             47392.99    -1.48
 Chile IPSA                              5095.17     0.21
 Argentina MerVal                       85615.44   -1.075
 Colombia COLCAP                         1393.89    -0.32

             Currencies                  Latest   Daily %
                                                  change
 Brazil real                              5.1460     0.13
 Mexico peso                             20.0498     0.33
 Chile peso                                889.3    -0.81
 Colombia peso                           4011.63    -0.02
 Peru sol                                 3.7183    -0.25
 Argentina peso (interbank)             123.8600    -0.15

 Argentina peso (parallel)                   219     0.46



 (Reporting by Shreyashi Sanyal in Bengaluru; Editing by Angus
MacSwan)