*

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

poll

*

Producer prices in Brazil rise 0.06% in February

*

Markets in Argentina closed for Veteran's Day

*

Latam FX up 0.2%, stocks add 0.6%

(Updated at 3:45 p.m. EDT/1945 GMT)

By Bansari Mayur Kamdar

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

boosted by strong copper prices ahead of an expected by 75

basis-point interest rate cut, while Brazil's real gave up

initial gains after the central bank intervened in the foreign

exchange market.

The currency of the world's largest copper producer, Chile

, rose 1% 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%.

"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," economists at Goldman Sachs wrote.

Meanwhile, Brazil's real strengthened as much as

0.67% against the dollar after the central bank intervened in

the foreign exchange market through an additional auction of

swap contracts. The real later pared gains and was about flat on

the day.

The intervention, announced late on Monday, was thought by

some market participants to meet demand created by the

redemption of a dollar-linked bond while others cited a need to

boost the real.

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

is among the worst-performing currencies in the region. The real

is down over 4% year-to-date and trading at its weakest level

since October 2023.

Chile's stock market IPSA was flat after hitting a

record high in the previous session.

The MSCI's index for Latin American currencies

advanced 0.2%, while stocks

gained 0.6%.

Mexico's peso gained 0.3%, while Colombia's

peso climbed 1.1% to its highest level since December 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.

Shares of Brazilian energy firm Enauta slipped more than

10% after the company presented an offer to combine

with fellow oil firm 3R Petroleum. 3R shares rose

1.5%.

Elsewhere, Fitch Ratings maintained Israel's "A+" sovereign

credit rating and removed the country from "rating watch

negative" but said the war in Gaza remained a risk.

Argentina's currency market, as well as its stock, bond and

grain markets, remained closed for Veteran's Day.

HIGHLIGHTS

** Egyptian President Abdel Fattah al-Sisi sworn in for

third term

** Brazil central bank asks government for 20% budget

increase this year

** Brazil's producer price index rose 0.06% in February

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1050.43 0.8

MSCI LatAm 2523.76 0.56

Brazil Bovespa 127590.41 0.47

Mexico IPC 57527.45 -0.22

Chile IPSA 6634.20 -0.06

Colombia COLCAP 1371.58 1.21

Currencies Latest Daily %

change

Brazil real 5.0587 -0.01

Mexico peso 16.5593 0.32

Chile peso 974.2 1.03

Colombia peso 3817.05 1.11

Peru sol 3.6933 0.51