(Updates with final prices) By Bruno Federowski SAO PAULO, Jan 17 (Reuters) - Mexico's peso and the Brazilian real strengthened against the dollar on Tuesday as U.S. traders returned from a long weekend in which President-elect Donald Trump said the greenback's strength against the Chinese yuan "is killing us." Brazil's central bank also sold $600 million worth of traditional currency swaps, which function like dollar sales for future delivery to investors, to roll over February maturities. The bank had refrained from intervening since Dec. 12 as the currency consolidated near 3.2 to the dollar. The real firmed 0.81 percent to 3.21 on Tuesday after slipping 2 percent in the two previous trading days. Brazil's central bank is the latest to step in after uncertainty over Trump's policies triggered currency volatility. The Mexican central bank twice sold dollars to curb the peso's decline this year. The peso firmed 1 percent on Tuesday but remained near an all-time low set last week. Yields paid on Brazilian interest rate futures <0#2DIJ:> narrowed as traders increased bets that the central bank will cut interest rates by an additional 75 basis points next month. According to the minutes of the central bank's last policy meeting, when it reduced the benchmark Selic rate by a larger-than-expected 75 basis points, a more ample supply of money will help the economy recover without fanning inflation. Key Latin American stock indexes and currencies at 2230 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 894.87 0.65 3.78 MSCI LatAm 2439.86 1.07 4.24 Brazil Bovespa 64354.34 0.82 6.85 Chile IPSA 4231.33 0.21 1.93 Chile IGPA 21088.83 0.14 1.71 Mexico IPC 46002.56 0.57 0.79 Colombia IGBC 10172.74 -0.18 0.44 Venezuela IBC 31734.52 0.14 0.09 Currencies Latest daily % YTD % change change Brazil real 3.2124 0.81 1.15 Mexico peso 21.509 1.03 -3.56 Chile peso 655.8 0.87 2.27 Colombia peso 2917.6 0.69 2.88 Argentina peso (interbank) 15.900 0.06 -0.16 Argentina peso (parallel) 16.8 0.24 0.12 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn and Sandra Maler)
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