EMERGING MARKETS-Strong dollar hits Latam FX, Russian assets rise

    * Dollar jumps eyeing Fed rate hikes
    * Russian stocks jump, rouble retraces some declines
    * S.African rand falls as delivers 'measured' rate
    * Chile's peso slips back after 150-bps rate hike

 (Adds comments, updates prices throughout)
    By Susan Mathew and Shreyashi Sanyal
    Jan 27 (Reuters) - Latin American currencies weakened on
Thursday after the dollar jumped following the Federal Reserve's
signal to raise interest rates soon, while Russia's rouble
jumped after the Kremlin left the door open for dialogue over
the Ukraine crisis. 
    Mexico's peso dipped 0.2%, giving back gains from
earlier in the session, while Brazil's real remained
range bound. 
    Chile's peso fell 0.3% after rising 1% following the
central bank's surprise 150-basis-point hike to its key lending
rate at 5.5% overnight, more than the 125 basis points expected
by markets.
    "The decision by Chile's central bank to deliver a
surprisingly large 150bp rate hike yesterday, to 5.50%, supports
our view that the tightening cycle will go further than the path
it had previously signaled," said Nikhil Sanghani, emerging
markets economist at Capital Economics. 
    "We think that the dramatic upward shift in investors' rate
expectations has probably gone a bit too far."
    Moody's on Thursday said Chile's newly elected
administration's rejection of additional pensions withdrawals is
    Further pressuring emerging market currencies was a stronger
dollar and higher U.S. Treasury yields following hawkish
Federal Reserve commentary that spurred bets of five or more
rate hikes this year. 
    Strong U.S. economic growth data on Thursday lent weight to
the speculations.
    The rouble, however, jumped 2% to 77.8 a dollar,
retracing losses that pushed it beyond 80 on Wednesday.  
    Kremlin spokesman Dmitry Peskov said U.S. and NATO
statements that Russia's main demands around post-Cold War
security arrangements in Europe were unacceptable did not leave
much room for optimism, but stopped short of closing the door on
    Russia said a pullback in NATO military forces from Eastern
Europe would help reduce military tensions in the region.

    Sovereign dollar bonds issued by Ukraine and Russia rose,
and the cost of insuring exposure to Russia eased. Russia's main
stocks index jumped 2.9%.
    "We think Russian assets would not sell off as much this
time around, unless the worst-case scenario materializes," said
strategists at TD Securities. 
    "We believe that the (central bank) is aware of these risks
and, while likely downplaying them in official communications,
may adjust the trajectory of monetary tightening to pre-empt
future moves," they said on Wednesday, adding they now expect a
100-basis-point hike from the central bank next month. 
    Meanwhile, Xiomara Castro was sworn in as Honduras' first
female president, and faces tests over a sharply divided
Congress and relations with China.
    South Africa's rand fell 1.1% after the country's
central bank raised interest rates by the expected margin and
suggested it would only increase rates gradually in the future.

    China's yuan dropped 0.7%, while Turkey's lira lost

    Key Latin American stock indexes and currencies at 1952 GMT:
        Stock indexes                 Latest    Daily %
 MSCI Emerging Markets                 1190.71    -1.71
 MSCI LatAm                            2245.13     0.04
 Brazil Bovespa                      112018.97     0.66
 Mexico IPC                           50520.36    -1.01
 Chile IPSA                            4562.74     0.23
 Argentina MerVal                     86097.87    0.368
 Colombia COLCAP                       1520.98    -0.08
            Currencies                Latest    Daily %
 Brazil real                            5.4232     0.27
 Mexico peso                           20.7876    -0.27
 Chile peso                              802.3    -0.22
 Colombia peso                         3956.63    -0.82
 Peru sol                               3.8274    -0.06
 Argentina peso (interbank)           104.7600    -0.05
 Argentina peso (parallel)               219.5     0.68
 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
editing by Jonathan Oatis)