By Susan Mathew
Dec 27 (Reuters) - The Chilean peso firmed 1% on Monday, recovering after its worst weekly drop since mid-November, while Turkey's lira fell 7% to erase some of the gains booked in last week's historic rally.
The gains in the peso, which led a rise across most emerging market currencies in holiday-thinned trade, came after it lost 2.4% last week mainly due to fears over the economic direction likely to be adopted by leftist Gabriel Boric after his victory in the presidential run-off election.
Currencies of oil exporting nations, Mexico MXN=, Colombia COP= and Russia, inched up as crude prices cut some losses and looked to move higher. O/R
But analysts painted a bleak picture for Mexican economic growth after weak third-quarter economic growth data on Friday.
"We have become more concerned about the negative inertia in some sub-sectors, especially within services, and believe downward risks to our 5.0% GDP (gross domestic product) growth estimate for the year have increased," said Citigroup strategists in a note.
Coronavirus concerns also weighed, with several airlines across the globe cancelling flights on fears about the spread of the Omicron variant. MKTS/GLOB
Brazil's real BRBY and an index of EM currencies .MIEM00000CUS were flat.
Turkey's lira TRY= dropped after rocketing more than 50% from record lows last week when new measures were unveiled to contain its free fall.
Peru's sol PEN= was flat amid concerns about copper production at MMG Ltd's 1208.HK Las Bambas copper mine in the country. Peru is the world's second-largest producer of copper.
An index of EM stocks .MSCIEF rose. China shares ended steady, while most shares in emerging Europe, Middle East, Africa and Latin America rose.
Chile stocks led gains among some of the major indices, up about 2% .SPIPSA
Key Latin American stock indexes and currencies at 1343 GMT:
Daily % change
MSCI Emerging Markets .MSCIEF
MSCI LatAm .MILA00000PUS
Brazil Bovespa .BVSP
Mexico IPC .MXX
Chile IPSA .SPIPSA
Argentina MerVal .MERV
Colombia COLCAP .COLCAP
Daily % change
Brazil real BRBY
Mexico peso MXN=D2
Chile peso CLP=CL
Colombia peso COP=
Peru sol PEN=PE
Argentina peso (interbank) ARS=RASL
(Reporting by Susan Mathew in Bengaluru; Editing by Aditya Soni)
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