EMERGING MARKETS-Higher commodities boost Latam FX, except real
* US data, higher commodities boost most Latam currencies
* Brazilian real drops as gov't comfortable with FX weakness
* Trading volumes thin ahead of European summit
By Walter Brandimarte
RIO DE JANEIRO, June 27 (Reuters) - Most Latin American currencies gained on Wednesday as higher commodity prices bolstered prospects for the region's exports, but the real weakened as a government official said Brazil was comfortable with the recent currency weakness.
The Mexican peso gained 1 percent to 13.62 per dollar, crossing its 50-day moving average, after some encouraging economic data in the United States, Mexico's main trading partner.
A rise in commodity prices also boosted the Chilean peso and the Colombian peso, which gained about 0.4 percent and 0.6 percent, respectively.
Prices for copper, Chile's main export, rose nearly 1 percent on the London Metal Exchange after U.S. data showed demand for manufactured goods rose sharply more than expected.
But the Brazilian real slid more than 0.6 percent as Finance Minister Guido Mantega said the government will continue to resort to lower interest rates and a weak currency to support exports and ensure economic growth of more than 2.5 percent this year.
Brazil's government on Wednesday unveiled a package of government purchases in its latest attempt to stimulate the economy. But a series of disappointing economic reports have sapped investor enthusiasm about Brazil, leading banks to revise lower their forecasts for the country's gross domestic product and currency.
In the latest sign of foreign investors' disappointment with Brazil, shares of oil company OGX plunged nearly 30 percent after the company lowered its output target for its only productive field. OGX had largely benefited from market enthusiasm about Brazil's promising oil sector.
Foreign investors were reportedly big sellers of OGX's shares on Wednesday, and any dollar outflows from Brazil could have significant impact on the exchange rate due to short market liquidity, traders said.
Trading volumes in general have been thin as investors cautiously await a summit of European leaders on Thursday and Friday. Hopes that the summit would result in an effective plan to stop the spreading of the region's debt crisis have dimmed as Germany opposes the launch of common euro-zone bonds.
The real's decline on Wednesday came even as the central bank sold all of the 60,000 currency swaps in an auction aimed at rolling over expiring contracts.
Latin American FX prices from Reuters at 17:55 GMT:
Currencies daily % YTD %
Latest Brazil real 2.0877 -0.76 -10.50
Mexico peso 13.6200 0.99 2.57
Argentina peso* 5.9300 0.17 -20.24
Chile peso 506.7000 0.36 2.49
Colombia peso 1,792.3500 0.59 8.15
Peru sol 2.6660 -0.19 1.16
* Argentine peso's rate between brokerages
(Reporting by Walter Brandimarte in Rio de Janeiro, Moises Avila in Santiago; Editing by Andrea Ricci)
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