By Bruno Federowski SAO PAULO, Aug 30 (Reuters) - The Chilean peso weakened on Wednesday as stronger-than-expected U.S. economic data and falling prices of copper drove profit-taking on the currency's recent rally. The peso closed 0.9 percent lower, breaking a string of seven straight daily gains triggered by a rally in futures of copper, a key export. The move came in the wake of stronger-than-expected U.S. second-quarter growth figures, which suggested that momentum remained solid in the third quarter. Fast private hiring in August also helped to boost the greenback, driving expectations for a solid U.S. August non-farm payrolls figure that could drive the Federal Reserve to raise interest rates for a third time this year. Expectations of tighter monetary policy in the United States initially depressed the Brazilian real, but the currency rebounded thanks to investor hopes that Congress would approve key fiscal measures this week. A congressional committee late on Tuesday approved softened budget targets for 2017 and 2018, paving the way for a final plenary vote ahead of an August 31 deadline. Lower house lawmakers were also set to vote later on Wednesday on the final amendments to a bill setting a lower benchmark rate for development bank BNDES that would phase out loan subsidies in coming years. "These votes may bring some calm to local markets," Correparti brokerage trader Jefferson Rugik said. Brazil's benchmark Bovespa stock index fell 0.8 percent, tracking global risk-aversion following the strong U.S. reports. Shares of financial stocks led the losses as traders booked profits on recent gains. Key Latin American stock indexes and currencies at 1700 GMT: Stock indexes Latest Daily YTD pct pct change change MSCI Emerging Markets 1,088.14 0.64 25.39 MSCI LatAm 2,866.71 -0.33 22.88 Brazil Bovespa 70,790.18 -0.76 17.54 Mexico S&P/BVM IPC 51,131.16 -0.36 12.02 Chile IPSA 5,149.07 -0.27 24.03 Chile IGPA 25,702.10 -0.24 23.96 Argentina MerVal 23,453.90 0.04 38.63 Colombia IGBC 10,883.79 -0.44 7.46 Venezuela IBC 225,468.08 6.77 611.14 Currencies Latest Daily YTD pct pct change change Brazil real 3.1591 0.11 2.85 Mexico peso 17.7475 0.53 16.88 Chile peso 630.9 -0.87 6.31 Colombia peso 2,941.25 -0.21 2.05 Peru sol 3.239 0.00 5.40 Argentina peso (interbank) 17.4000 0.00 -8.76 Argentina peso (parallel) 18.22 0.38 -7.68 (Reporting by Bruno Federowski; Editing by Andrew Hay)
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