*

Chile cenbank to cut interest rate by 75bps in April -

poll

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Producer prices in Brazil rise 0.06% in February

*

Markets in Argentina closed for Veteran's Day

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Latam FX up 0.2%, stocks add 0.3%

By Bansari Mayur Kamdar

April 2 (Reuters) - The Chilean peso rose on Tuesday,

boosted by strong copper prices, ahead of a central bank

decision where the Andean nation's policymakers are expected to

cut interest rate by 75 basis points.

The currency of the world's largest copper producer Chile

rose 0.7% against the greenback.

Strong factory data from China and plans to cut production

by smelters in the top consumer triggered buying, boosting the

red metal's prices and offsetting the resilient dollar.

Investors awaited the central bank's rate decision later in

the day, with Chilean policymakers expected to cut the benchmark

interest rate to 6.50%, after lowering it by 100 basis points in

January.

"With inflation around target, inflation expectations

anchored at 3%, and the output gap closed, we expect the MPC

(Monetary Policy Committee) to maintain their guidance for the

policy rate to reach its neutral level in the second half of

2024," said economists at Goldman Sachs in a note.

The Chilean peso has fallen nearly 10% so far this year and

is among the worst performing currencies in the region.

Chile's stock market IPSA eased 0.6% after hitting

a record high in the previous session.

The MSCI's index for Latin American currencies

advanced 0.2%, while stocks

gained 0.3%.

The Brazilian real added 0.2% against the greenback.

Data showed Brazil's producer price index rose 0.06% in

February, after falling 0.24% in the previous month.

Oil producers Mexico and Colombia's pesos

climbed 0.1% and 0.4% against the dollar, supported by firm

crude prices on supply concerns after Ukrainian attacks on

Russian energy facilities and the escalating conflict in the

Middle East.

Argentina's currency, stock, bond and grain markets remained

closed on Tuesday for Veteran's Day.

Elsewhere in emerging markets, Fitch Ratings maintained

Israel's 'A+' sovereign credit rating on Tuesday and removed the

country from "rating watch negative" (RWN) but said the war in

Gaza remained a risk.

Suspected Israeli warplanes bombed Iran's embassy in Syria

on Monday, adding to concerns about geopolitical tensions.

Egyptian President Abdel Fattah al-Sisi was sworn in for his

third term in the country's new capital.

Key Latin American stock indexes and currencies at 1420 GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1049.86 0.75

MSCI LatAm 2518.23 0.34

Brazil Bovespa 127298.08 0.24

Mexico IPC 57634.67 -0.03

Chile IPSA 6596.48 -0.62

Colombia COLCAP 1367.68 0.93

Currencies Latest Daily %

change

Brazil real 5.0456 0.25

Mexico peso 16.5965 0.09

Chile peso 978.2 0.61

Colombia peso 3848.34 0.29

Peru sol 3.7213 -0.25

(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by

Devika Syamnath)