*

Latam FX down 0.2%, stocks off 0.4%

*

Brazil's services sector grows more than expected in Jan

*

Argentina Senate rejects economic 'mega decree'

(Updated at 3:45pm ET/1945 GMT)

By Shristi Achar A

March 15 (Reuters) - Latin American currencies and

stocks slipped on Friday as investor sentiment remained tepid

due to waning hopes of U.S. interest rate cuts later this year.

The U.S. dollar was set for its best week since

January and global stocks slipped, as data showing persistent

inflationary pressures in the U.S. this week led investors to

dial back bets of rate cuts from the Federal Reserve in June.

The MSCI index tracking Latin American currencies

dipped 0.2%, with Chile's peso and

Brazil's real both down about 0.2%, leading regional

declines.

On a weekly basis, however, the index edged up 0.1%, its

third straight week in the green, with Chile's peso among top

weekly performers as the copper-exporting region's currency

benefited from a jump in prices of the red metal.

Trading was cautious as investors eye the Federal

Reserve's meeting next week, where the central bank is widely

expected to hold rates steady but will release updated economic

projections.

"While there has been some repricing in U.S. rates, we

believe that high-for-longer rates and inflation is still the

most underpriced risk in LatAm," analysts at BofA Global

Research noted.

The central banks of

Brazil

, Mexico and

Colombia

will also hold policy meetings next week.

A gauge of Latin American stocks was

down 0.4% but eyed gains of nearly 0.6% for the week.

MSCI's gauge of global emerging market stocks

slumped 1.3%, set for its worst day in nearly two months, while

a basket of global EM currencies lost 0.3% in

its worst session since Feb 5.

Emerging market bond

funds

received $473 million in the week to March 13, breaking a

four-week trend of outflows. However EM equity funds continued

to see outflows, according to LSEG data.

Brazil's Bovespa index underperformed Latam

peers, falling 0.9%, pressured by losses in mining stocks as

futures for iron ore, one of the country's top exports, tumbled

to a more than six-month low.

Also weighing on the index was a 6% drop in shares of

retailer Lojas Renner following quarterly results.

Focus was also on Argentina, whose Senate on Thursday voted

to reject President Javier Milei's sprawling "mega decree" of

economic reforms, a major blow to the libertarian leader's

austerity agenda.

Argentina's Merval index rose 2.3% while the

Argentine peso weakened to 1,005 per dollar in parallel

black market trade.

The Colombian peso ticked up 0.4%.

Peru's sol weakened slightly to 3.6751 per

dollar despite cautiously optimistic economic forecasts from the

central bank.

Highlights

**

Ukraine's overseas bondholders are in talks to form a

creditor committee

-sources

**

Brazil's Treasury

sees gross debt at 77.3% of GDP this year

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1034.66 -1.34

MSCI LatAm 2505.51 -0.44

Brazil Bovespa 126609.04 -0.85

Mexico IPC 56148.35 0.16

Chile IPSA 6463.76 0.05

Argentina MerVal 1063053.71 2.306

Colombia COLCAP 1284.35 0.09

Currencies Latest Daily %

change

Brazil real 4.9962 -0.19

Mexico peso 16.7072 -0.07

Chile peso 941.9 -0.23

Colombia peso 3874 0.42

Peru sol 3.6751 -0.06

Argentina peso 850.5000 0.00

(interbank)

Argentina peso 1005 1.99

(parallel)