RPT-EMERGING MARKETS-Latam currencies fall on euro zone uncertainty

(Repeats to additional subscribers)
* Investors worry EU summit will fail to solve debt crisis
* Expectations of central bank intervention support Brazil
real
* Real down 0.3 pct, Mexican peso falls 0.7 pct

By Natalia Cacioli
SAO PAULO, June 25 (Reuters) - Latin American currencies
weakened on Monday on fear that a summit of European leaders
later this week would do little to stop the euro-zone debt
crisis from further spreading and weighing on the global
economic prospects.
The Mexican peso and the Chilean peso lost
more than 0.7 percent, while the Brazilian real
dropped a more modest 0.3 percent as investors anticipated the
central bank could intervene at any moment to support the
currency.
"World stocks are falling and the euro is weakening sharply,
but the real is not reflecting those moves because investors
believe the central bank will intervene," said Italo dos Santos,
a manager at the currency desk of Icap brokerage in Sao Paulo.
The Brazilian central bank hasn't intervened in the foreign
exchange market with the sale of currency swaps since June 11.
Those contracts have a market impact similar to the sale of
dollars in futures markets.
Uncertainty related to the euro zone is poised to rise this
week, before European leaders meet in Brussels on Thursday and
Friday, in a bid to put an end to the crisis which on Monday
forced Spain to request a package worth up to 100 billion euros
to rescue its banks.
But hopes of faster fiscal integration in the euro zone, the
solution many investors would like to see, are fading as German
Chancellor Angela Merkel repeats her opposition to shared
liability for the region's debts.
"Markets remain very pessimistic and uncomfortable," said
Silvio Campos Neto, an economist with Tendencias consultancy in
Sao Paulo. "Investors are speculating that nothing will be
decided at the EU summit this week."

Latin American FX prices from Reuters at 14:38 GMT:
Currencies daily % yearly %
change change
Latest
Brazil real 2.0714 -0.35 -9.80

Mexico peso 13.9525 -0.72 0.12

Argentina peso* 5.9500 0.50 -20.50

Chile peso 507.0000 -0.83 2.43

Colombia peso 1,802.6500 -0.65 7.53

Peru sol 2.6590 -0.34 1.43

* Argentine peso's rate between
brokerages

(Additional reporting by Walter Brandimarte and Danielle
Assalve; Editing by Chizu Nomiyama)