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EMERGING MARKETS-Brazil real hits 2-month low on unease over Fed

RIO DE JANEIRO, Nov 5 (Reuters) - The Brazilian real led

Latin American currencies lower on Tuesday, falling 2 percent to

its weakest level since early September, as investors grew

anxious that upcoming U.S. economic data may support the case

for an early withdrawal of U.S. stimulus.

Stronger-than-expected U.S. data last week triggered a

sell-off in Latin American currencies, leaving investors

wondering if the U.S. economy will again show unexpected

robustness in Thursday's third-quarter U.S. gross domestic

product numbers and Friday's non-farm payrolls for October.

On Wednesday, a report showing the U.S. service sector grew

faster than expected in October added to speculation that the

U.S. Federal Reserve may start winding down its bond-buying

program later this year, reducing investors' appetite for risk.

"Markets are worried about the Fed, whether there will be a

reduction in stimulus or not, and waiting for Friday's jobs

numbers," said Reginaldo Galhardo, a manager at the currency

desk of Treviso brokerage in Sao Paulo.

The Fed's program injects $85 billion a month into the U.S.

economy, and part of that money often finds its way to emerging

markets as investors seek higher yields.

* The Brazilian real slid 2 percent to 2.2925

per dollar, its weakest level since Sept. 11.

* Traders speculated that the Brazilian central bank, in an

attempt to cushion the real's losses, could step up its market

intervention by offering to roll over currency swaps that mature

in the beginning of December.

* The Mexican peso lost 1.3 percent to 13.1685 per

dollar, its weakest level since Oct. 10.

Latin America FX prices at 1504 GMT:

Currencies daily % YTD %

change change


Brazil real 2.2925 -2.13 -11.01

Mexico peso 13.1685 -1.32 -2.31

Chile peso 515.3000 -0.49 -7.10

Colombia peso 1917.7000 -0.75 -7.91

Peru sol 2.7800 0.00 -8.24

Argentina peso 5.9550 -0.21 -17.51

Argentina peso 9.7500 1.33 -30.46