EMERGING MARKETS-Brazil's real slips as inflation rises, Latam FX down - NewsBreak

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By Olachi in Business
Updated 3 years ago

* Brazil's real down 0.4% * Petrobras slips after Monday's surge * Strong Q3, buyback lift EDP Energias do Brasil (Adds details, updates prices) By Susan Mathew and Ambar Warrick Oct 26 (Reuters) - Brazil's real fell on Tuesday as rising inflation fed concerns that the continuation of aggressive monetary policy tightening might choke economic growth, while most other Latin American currencies edged lower against a steady dollar. The real slipped 0.4% as data showed Brazil's inflation rose more than expected in the month to mid-October, driven by higher fuel and electricity prices - the fastest monthly pace of increase for prices since February 2016. "(The data) increases the likelihood of (Brazil's monetary policy committee) Copom accelerating the hiking pace tomorrow," said strategists at Citi. According to a Reuters poll last week, the benchmark Selic rate is expected to be raised by 100 basis points on Wednesday. Positive tax revenue data for September helped the real recoup some of

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