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* Chile’s July inflation rate eases further to 6.5% * Brazil cbank deems larger rate cuts unlikely * Colombia July inflation data due (Updated at 1912 GMT) By Ankika Biswas and Amruta Khandekar Aug 8 (Reuters) – Currencies of resource-rich Latin American countries were subdued on Tuesday as China’s weak trade data depressed sentiment, while minutes from Brazil’s August policy meeting tempered market speculations around deeper rate cuts. The MSCI index for Latam currencies held near the unchanged mark by 1912 GMT, with the U.S. dollar moving further away from recent one-week lows after data showed a faster than expected fall in China’s July imports and exports. “In the last couple of days we saw not only the Brazilian real but also the Chilean peso and Colombian peso losing some territory against the dollar,” said Matheus Zani, head of FX risk management at Deaglo. “Basically, (there is) negative sentiment in international markets mainly driven by concerns over global growth due to China’s weak imports.” The data from China, a top metals and oil consumer, stoked concerns regarding the demand outlook and pressured commodity prices. Top copper producer Chile’s peso fell 0.3% while the currencies of large oil exporters, Colombia’s peso and the Mexican peso, lost around 1.4% and 0.1% respectively. Also weighing on the Chilean peso, data showed Chile’s inflation rate eased sharply to 6.5% in July, continuing a downward trend, though it stayed well above the central bank’s target. Latam currencies have pulled back sharply from multi-year highs touched earlier this year, after central banks in the region started a monetary policy easing cycle in response to clear signs of slowing inflation. Chile last month began monetary policy easing with a 100 basis point (bps) rate cut on easing inflation. Following the inflation data, Citi analysts expect inflation to continue to trend down through second half of 2023, paving the way for 100 bps cuts in each of the three remaining policy meetings, with a closing rate of 7.25% by year-end. Colombia’s July inflation print is also due later in the day. Brazil’s real traded flat. Brazil’s central bank, in its August meeting minutes, signaled a low probability of accelerating rate cuts and underscored its commitment to steering inflation towards official targets within contractionary monetary policy. The MSCI index for Latam stocks fell 0.3% but was off its session lows. Elsewhere, former Pakistani prime minister Imran Khan, who has been convicted and jailed on graft charges, was barred from politics for five years on Tuesday, an official order said. Key Latin American stock indexes and currencies at 1912 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1004.13 -1.2 MSCI LatAm 2438.54 -0.26 Brazil Bovespa 119280.41 -0.08 Mexico IPC 53608.00 -0.79 Chile IPSA 6256.76 -0.97 Argentina MerVal 468731.96 3.61 Colombia COLCAP 1172.51 0.19 Currencies Latest Daily % change Brazil real 4.8965 -0.06 Mexico peso 17.0867 -0.24 Chile peso 861 -0.33 Colombia peso 4079 -1.41 Peru sol 3.6912 -0.07 Argentina peso 284.0500 -0.30 (interbank) Argentina peso 593 0.51 (parallel) (Reporting by Ankika Biswas, Amruta Khadekar and Shristi Achar A in Bengaluru; editing by Barbara Lewis and Alistair Bell)