(Removes reference to Argentine stocks and peso in the table as the country's markets are closed for a holiday) By Susan Mathew March 24 (Reuters) - Latin American currencies firmed on Tuesday, joining broader emerging market peers as the dollar slipped after the U.S. Federal Reserve announced extraordinary stimulus that eased worries about funding bottlenecks. Stocks also found footing as Wall Street indexes jumped on signs the U.S. Senate is nearing a deal on a $2 trillion economic rescue package. Brazil shares surged 9%, while Chile stocks jumped almost 5%. Breaking a five-day losing streak, Mexican equities rose 3.5%. The Fed on Monday said not only will it buy unlimited amounts of assets but also expand its mandate to corporate and municipal bonds and backstop a series of other measures that analysts estimate will deliver $4 trillion-plus in loans to non-financial firms. That dented the dollar, helping Mexico's peso jump as much as 3% in what could be its best day in more than 9 months. Brazil's real rose 1.4%, while the Chilean peso firmed 2%, on course for its biggest one-day gain in four months. The Fed's move was its latest in a series of measures unveiled recently to support the economy and calm markets as the coronavirus pandemic threatens to bring global economic activity to a grinding halt. Surveys showed that business activity across the globe collapsed at a record pace in March. The virus continues to spread at an alarming rate, intensifying fears of a prolonged impact on global growth. Brazil's real, which had been steadily hitting new lows even before the outbreak due to flailing fundamentals, has losses of almost 21% so far this year. It is one of the worst-performing among commonly watched emerging market currencies, outdone by oil exporter Russia's ruble and Mexico's peso. With the dollar expected to bounce back amid rising uncertainty, the real may remain pressured over the next three months, wrote Mauricio Une, senior strategist, Brazil, at Rabobank. Mexico's currency hit yet another all-time low of 25.444 during Asian hours but recovered some ground, putting it on track for its first session of gains in 10. The currency has been hammered by carry trade unwind and an oil shock further pressuring a weak economy. "We don't expect to see USD/MXN trading with an 18 handle again even looking beyond the Covid-19 impact," said Christian Lawrence, senior market strategist, Mexico, at Rabobank. "In the short term we could even see a 26 handle." The pandemic has also pushed currencies of Colombia and Chile to lifetime lows recently as oil and copper prices have tanked. Rising oil prices on Tuesday helped crude producer Colombia's currency rise 1.6%. Late on Monday, its central bank said it could buy $2.94 bln in debt to boost liquidity. Key Latin American stock indexes and currencies at 1415 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 801.63 5.73 MSCI LatAm 1498.97 8.39 Brazil Bovespa 69335.22 9.07 Mexico IPC 34111.51 3.48 Chile IPSA 3035.37 4.75 Colombia COLCAP 908.50 -1.21 Currencies Latest Daily % change Brazil real 5.0611 1.47 Mexico peso 24.9170 1.69 Chile peso 846.4 1.67 Colombia peso 4109.52 1.67 Peru sol 3.5217 0.28 (Reporting by Susan Mathew in Bengaluru; Editing by Dan Grebler)
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