(Updated at 1525 GMT)

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Chile economic activity below expectations

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Czech central bank cuts rates by 25 basis points

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Ukraine temporarily suspends debt repayments

By Lisa Pauline Mattackal

Aug 1 (Reuters) - Latin American currencies were flat to

lower against the U.S. dollar on Thursday as geopolitical

worries lifted the safe-haven greenback, while the Czech crown

reversed losses against the euro after its central bank slowed

the pace of monetary policy easing.

An index of Latin American currencies

slipped 0.3% as the U.S. dollar recouped some ground amid

growing concerns about the widening conflict in the Middle East.

Most regional currencies were flat to lower against the

greenback, while Brazil's real weakened 0.6% a day after

its central bank held interest rates and warned "more vigilance"

was necessary due to worsening inflation expectations and recent

market swings.

Meanwhile, the Czech crown reversed early losses

and rose 0.3% against the euro, picking up from two-year lows

after the Czech National Bank cut rates by 25 basis points.

The move slowed the pace of policy easing, coming after four

50-basis-point cuts. Governor Ales Michl said the bank was

leaving the door open on whether it would continue to cut rates

in subsequent meetings.

Bucking the trend, Chile's peso rose for a third

straight session against the dollar, up 0.5% despite data

showing the country's IMACEC economic activity index grew just

0.1% in June, below forecasts.

"We still like the CLP, given policymakers' more friendly

approach to fiscal policymaking, relative political stability in

Chile, and the positive outlook for the balance of payments,"

said Thierry Wizman, global FX and rates strategist at

Macquarie, adding he sees the currency heading to 880 this year.

The dollar's gains and weaker global manufacturing data,

notably in China, dented some gains for emerging markets assets

after the U.S. Federal Reserve signaled on Wednesday they could

cut rates in September.

Emerging markets were somewhat bolstered in July on hopes

for easier policy in the U.S., but were hit as a global equity

selloff, resurgent geopolitical worries and signs of softening

economic growth in economies like China have weighed.

The Turkish lira recouped some ground against

the greenback, gaining 0.2% to 33.08 after briefly touching a

record low.

Elsewhere in Latin America, tensions in Venezuela remained

high amid protests over the results of its presidential

election.

On the equities front, MSCI's index of Latin American stocks

lagged the broader emerging market index

, falling 0.4% after jumping over 1% in the previous

session.

Colombia's EcoPetrol lost 1.6% after Occidental

Petroleum ( OXY ) said the Colombian company will not buy a

stake in shale oil producer CrownRock after reporting last month

they were in talks for a potential stake sale.

Ukraine's finance ministry said it was "encouraged" by

investor responses to its debt restructuring proposal, after the

country temporarily suspended foreign debt payments on

Wednesday.

HIGHLIGHTS

** Protesters in Nigeria demonstrate over high cost of

living

** SPECIAL REPORT - How Africa's 'ticket' to prosperity

fueled a debt bomb

** China securities official expected to lead Shenzhen stock

exchange, say sources

** WEEKAHEAD-AFRICA-FX-Kenyan shilling seen steady, Ghana's

cedi could weaken

Key Latin American stock indexes and currencies

Latest Daily %

change

MSCI Emerging 1088.11 0.31

Markets

MSCI LatAm 2191.98 -0.3

Brazil Bovespa 128154.84 0.39

Mexico IPC 52839.72 -0.48

Chile IPSA 6396.83 -0.68

Argentina 1478239.43 -1.96

MerVal

Colombia 1342.12 -0.27

COLCAP

Currencies Latest Daily %

change

Brazil real 5.6799 -0.45

Mexico peso 18.5929 0.04

Chile peso 939.4 0.33

Colombia peso 4054.32 -0.17

Peru sol 3.7383 -0.41

Argentina peso 932.0000 -0.11

(interbank)

Argentina peso 1350 1.48

(parallel)