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EMERGING MARKETS-Colombian peso extends rally after rate hike; dollar strength weighs on FX

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* Colombian central bank hikes rates by 150 bps to 9% * Mexican GDP growth beat forecast, but analysts see gloom ahead * Vale slides on profit miss; Petrobras jumps on bumper results (Updates prices; adds detail, comment) By Susan Mathew and Anisha Sircar July 29 (Reuters) - Colombia's peso jumped nearly 2% on Friday after its central bank announced a sharp interest rate hike, while most other emerging market currencies lost as the dollar regained momentum following worrying inflation data from the United States. The Andean country's central bank raised the benchmark interest rate to 9% - in line with market expectations - taking the rate to its highest level since February 2009, and sending the peso up 1.9%. "Colombia's 150 bps rate hike will narrow the largest gap between the actual and the expected policy rate among major EMs... Brazil's +50 bps move in early August will bring it one step closer to the end of the tightening cycle," said Natalia Gurushina, EM economist at VanEck. Brazil's central bank will hike its key rate by 50 bps next week, a Reuters poll predicted, matching an increase at its last meeting following a year of aggressive moves to combat inflation. The real slipped 0.2%, while Mexico's peso was down 0.5%. The dollar gained after data showed U.S. inflation did not moderate in June, giving the Federal Reserve more reason to hike. Capping some losses in Mexico's peso, data showed the country's economy expanded 1% between April and June from the prior three-month period, beating forecasts and marking the third consecutive quarter of growth. But analysts point to deceleration through the rest of the year. "Indicators of economic activity (in Mexico) began showing mixed readings at the end of H1, highlighting the loss of growth momentum," said Wilson Ferrarezi, an economist with TS Lombard. "FX inflows are likely to weaken later this year and into 2023 as U.S. economic activity slows. Meanwhile, inflation will remain high for the remainder of the year, capping the upside in consumer spending." Among stocks, Brazil's Bovespa index hit six-week highs as a rally in oil major Petrobras after bumper results offset a slide in miner Vale following a profit slip. Argentina's Merval declined 1.8%. President Alberto Fernandez picked the ruling coalition's most powerful figures to lead a new "superministry" to tackle the country's economic crisis. "The appointment provides some hope that the government will stick to its latest IMF deal but, even so, meeting the Fund’s targets will be a tall order, especially ahead of next year’s presidential election," said Kimberley Sperrfechter, EM economist at Capital Economics. On the same day, the central bank hiked interest rates to 60% with analysts expecting Argentine inflation to hit 80% this year. Key Latin American stock indexes and currencies at 1700 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 992.97 -0.47 MSCI LatAm 2146.63 1.8 Brazil Bovespa 103989.47 1.36 Mexico IPC 48106.76 -0.01 Chile IPSA 5259.18 0.01 Argentina MerVal 125690.18 -1.342 Colombia COLCAP 1306.78 -1.02 Currencies Latest Daily % change Brazil real 5.1720 -0.21 Mexico peso 20.3464 -0.40 Chile peso 899 0.99 Colombia peso 4277.6 1.96 Peru sol 3.91 0.00 Argentina peso 131.2600 -0.10 (interbank) Argentina peso 291 7.90 (parallel) (Reporting by Susan Mathew in Bengaluru; Editing by Barbara Lewis and Alistair Bell)