EMERGING MARKETS-Brazil’s real firms, U.S. dollar flat

* Brazil’s real gains 0.2 pct, Mexican peso sheds 0.1 pct

* Chile’s peso firms 0.4 pct as copper price rises

By Samantha Pearson and Maria Jose Latorre

SAO PAULO/SANTIAGO, Dec 28 (BestGrowthStock) – Latin American
currencies edged higher on Tuesday as the U.S. dollar weakened
broadly in light holiday trading.

The weak greenback also lifted the price of commodities
such as oil and copper, the economic lifeline of many Latin
American economies.

The Brazilian real (BRBY: ) was bid 0.18 percent stronger at
1.685 reais per U.S. dollar on the local spot market as the
greenback traded flat against a basket of the world’s major
currencies (.DXY: ).

“We maintain our view that the real will end the year at
1.70 per dollar and we’re still working with 1.70 for our 2011
scenario… The combination of (high) interest rates and the
growth differential still favors the Brazilian economy,” said
Eduardo Velho, an economist at the Prosper brokerage in Rio de
Janeiro, in a research note.

The Chilean peso (CLP=: ) also firmed, gaining 0.42 percent
to 469.4 per dollar as the price of copper, the country’s main
export, rose.

“(The peso) opened stronger and is looking for levels
around 468 per dollar. It is getting support from the dollar’s
weakness against other important currencies in the world and
the increase in metal prices,” said one currency trader in
Santiago.

The Mexican currency (MXN=: ) weakened nearly 0.1 percent to
12.3679 per dollar.
(Editing by Padraic Cassidy)

EMERGING MARKETS-Brazil’s real firms, U.S. dollar flat