EMERGING MARKETS-Latam currencies slip; Mexico, Colombia pesos at new lows

(Adds closing prices, details on Mexican markets)
    SAO PAULO, Dec 14 (Reuters) - Latin American currencies
weakened on Monday, with the Mexican and Colombian pesos hitting
record lows, as a drop in oil prices dampened appetite for risky
assets ahead of a widely anticipated U.S. Federal Reserve
    The U.S. central bank is expected to raise benchmark rates
for the first time in almost a decade on Wednesday, which could
reduce the allure of assets in emerging markets. 
    However, investors seemed to have prepared for the move well
in advance and expected the bank to tighten policy slowly in the
months that follow.
    "To a large extent, this move, and some modest additional
tightening, is already priced into the markets," wrote
Scotiabank analysts in a client note. "So much will hinge on
what the Fed says in terms of market reaction."
    The Colombian peso hit a fresh record low as oil
prices resumed their slump amid concerns of a global glut,
closing down 0.9 percent at 3,350 per dollar. 
    Also dragged down by oil, the Mexican peso dipped to
another historical low on Monday at 17.465 per dollar, while the
country's benchmark IPC stock index fell as much as 1.16
percent to its lowest level in nearly four months. The peso
recovered some of its losses to close down 0.1 percent.
    Brazil's currency and stocks also slipped after
demonstrations demanding President Dilma Rousseff's ouster on
Sunday yielded a smaller attendance than earlier protests. The
country's Bovespa stock index fell 1.1 percent while the
real weakened 0.3 percent. 
    Traders have largely applauded the opening of impeachment
proceedings against left-leaning Rousseff, betting that a
political reckoning could jump-start a recovery in Latin
America's largest economy.
    Some analysts warn, however, that the optimism could be
short-lived. Moody's Investors Service said last week it could
downgrade the country's rating to "junk" because political
uncertainty may delay the approval of fiscal austerity measures.
    Latin American stock indices at 2200 GMT:
 Stock indexes                    Latest        Daily     YTD
                                                 pct      pct
                                               change  change
 MSCI Emerging Markets               771.22      -0.3  -19.35
 MSCI LatAm                        1,838.89     -0.95  -32.58
 Brazil Bovespa                   44,747.31     -1.14  -10.52
 Mexico IPC                       41,901.96     -0.23   -2.88
 Chile IPSA                        3,532.73     -0.01   -8.26
 Chile IGPA                       17,492.93         0   -7.30
 Argentina MerVal                 12,337.32     -3.45   43.81
 Colombia IGBC                     7,953.74     -0.19  -31.64
 Venezuela IBC                    14,478.96     -3.51  275.23
 (Reporting by Bruno Federowski; Editing by Matthew Lewis)