EMERGING MARKETS-Brazil interest rates fall as cenbank cuts GDP view

* Brazil cenbank cut 2012 GDP growth estimate to 2.5 pct
* Brazil real falls 0.7 pct on Ptax fight, despite swap
auction
* Mexico peso down 0.7 pct, Chilean peso falls 0.55 pct

By Natalia Cacioli
RIO DE JANEIRO, June 27 (Reuters) - Brazil's real and
interest rate futures declined on Tuesday after the central bank
sharply reduced its growth estimate for 2012, while concerns
over the future of the euro zone weighed on Latin American
currencies in general.
The real was further pressured by investors
willing to test the central bank's tolerance to a weaker
currency, especially as many of them try to influence the bank's
month-end Ptax rate - which is used to settle everything from
export payments to foreign loans.
The real lost 0.7 percent to trade at 2.0918 to the dollar
even after the central bank sold all 60,000 currency swaps it
offered in an auction on Thursday, increasing the supply of
dollars in the market.
"Investors overseas are totally worried about the EU summit.
Here we have this fight over the Ptax closing rate that is
driving the real down, and that's why the central bank auctions
have little market impact," said Mario Battistel, manager at the
currency desk of brokerage Fair Corretora in Sao Paulo.
Brazil's interest-rate futures also fell after the central
bank cut its economic growth forecast for this year to a meager
2.5 percent, signaling it may keep pushing the limits of
monetary policy to boost the economy.
Interest-rate contracts maturing in Jan. 2014 , the
most widely-traded at Brazil's BM&FBovespa exchange, fell to
7.88 percent from 7.94 percent on Wednesday.

EURO-ZONE
Worries about the ability of EU leaders to agree on a way
out of the region's debt crisis sapped investor appetite for
emerging market assets in general, driving the Mexican peso
and the Chilean peso more than half a percentage
point lower.
"The (Chilean) peso is falling sharply with the tensions in
the euro zone. It seems like there is no agreement on eurobonds,
which is what markets are hoping for," said Sergio Tricio, head
of research at Forex Chile.
Hopes of faster fiscal integration in the euro zone, a move
that many investors see as a solution for the crisis, faded
after a spokesman for the German finance minister denied a
report that Germany could be willing to move sooner than
expected to accept shared liability of euro-zone debt.
Yield spreads between emerging market sovereign debt prices
and U.S. Treasuries, a key gauge of investors' aversion to risk,
widened 5 basis points to a two-week high of 381 basis points,
according to JPMorgan's EMBI+ index.

Latin American FX prices from Reuters at 16:33 GMT:

Currencies daily % year-to-
change ate %
Latest change
Brazil real 2.0918 -0.70 -10.68

Mexico peso 13.6622 -0.67 2.25

Argentina peso* 5.9600 -0.17 -20.64

Chile peso 509.5000 -0.55 1.92

Colombia peso 1,807.6000 -0.81 7.24

Peru sol 2.6690 -0.11 1.05

* Argentine peso's rate between
brokerages