* Latam stocks fall from recent peaks * Peruvian sol recovers from 18-year low * Brazil's real still set for strong recovery- analyst By Ambar Warrick Nov 11 (Reuters) - Brazil's real dipped on Wednesday after retail sales came in weaker than expected, while most other Latin American currencies retreated as investors attempted to gauge the availability of a COVID-19 vaccine. The real fell as much as 0.6% after data showed that September retail sales rose for the fifth consecutive month to a record high, although the increase was by far the smallest in those months and only around half of what economists had expected. The reading underlined the economic stress from the pandemic on Latin America's largest economy. Still, analysts noted that Brazil's economic fundamentals were far stronger than most other countries in emerging markets, and that a post-pandemic recovery for the real was due. "Given that the real is very cheap at current levels, we do not think that a continued sell-off in the real at the rate witnessed since the onset of the crisis is likely in the long-term," said Matthew Ryan, senior market analyst at financial services provider Ebury. "We are instead continuing to pencil in a recovery for the currency against the dollar through to the end of 2021," he said. Ryan cited Brazil's strong foreign exchange reserves, low external debt levels and a manageable current account deficit as reasons to buy into the real. While optimism over a vaccine had caused a bumper rally in emerging markets earlier this week, a continued rise in global coronavirus cases and signs of the pandemic's economic fallout saw markets retracing their steps. The U.S. dollar rose on safe-haven demand. Mexico's peso fell about 0.6% after September industrial output was flat in September - a sign that a fledgling recovery may be stalling. Losses in Chile's peso were limited by the prices of copper, the country's top export, holding at a near 29-month peak. News of the Pfizer Inc-BioNTech vaccine had caused a rally in commodity markets as investors bet on a swift return to pre-pandemic demand. Colombia's peso was supported by strength in the oil market. Peru's sol recovered slightly from an 18-year low after Manuel Merino was sworn in as interim President of Peru on Tuesday, following President Martin Vizcarra's ouster by Congress a day earlier. Vizcarra's ouster had raised concerns of political instability in the Andean nation, sending the sol and sovereign bonds tumbling. Latin American stocks came off recent peaks, with Brazil's Bovespa index falling about 0.7% from an eight-month high. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1176.69 -0.27 MSCI LatAm 2109.79 -0.58 Brazil Bovespa 104571.78 -0.47 Mexico IPC - - Chile IPSA 3982.01 0.11 Argentina MerVal - - Colombia COLCAP 1213.39 - Currencies Latest Daily % change Brazil real 5.3940 -0.09 Mexico peso 20.4380 -0.61 Chile peso 755.5 0.03 Colombia peso 3631.5 -0.10 Peru sol 3.6107 0.33 Argentina peso 79.4200 0.03 (interbank) (Reporting by Ambar Warrick in Bengaluru; editing by Emelia Sithole-Matarise)
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