The real fell 0.5%, pushing the MSCI's index for Latin American currencies 0.1% lower. Worries about the Brazilian government's ability to fund a new fiscal program have persisted, despite an assuring tone from the country's Economy Minister Paulo Guedes. Investors also awaited a policy meeting of Brazil's central bank's rate-setting committee, Copom, on Wednesday.
Millions of Chileans voters gave a ringing endorsement to a plan to tear up the country's Pinochet-era constitution on Sunday night after large and violent social protests last year sparked demand for a new charter. The Chilean peso snapped a six-day winning streak to fall 0.6%, as analysts feared the rewriting of the constitution may cause the central bank to adopt a more dovish stance in the medium term. "The road ahead is full of uncertainties and rewriting the constitution will be a complex process," said Nikhil Sanghani, Latin America economist at Capital Economics.
* Brazilian real still set for weekly rise * Mexican peso up after retail sales rise for fourth month * Morgan Stanley bullish on emerging FX and sovereign credit * EM stocks see biggest inflows in 6 weeks - BofA flows data (Updates prices throughout) By Shreyashi Sanyal Oct 23 (Reuters) - Brazil's real lost ground on Friday after a weak reading on consumer confidence, although Latin American currencies were still set to end the week higher as the dollar headed for a weekly loss. The Brazilian real fell 0.5% after a survey showed consumer confidence fell in October for the first time in six months, suggesting the economy's recovery may be losing steam.