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EMERGING MARKETS-LatAm currencies strengthen on U.S. healthcare bill collapse

By Bruno Federowski SAO PAULO, July 18 (Reuters) - Latin American currencies strengthened on Tuesday after the collapse of a key U.S. healthcare bill fostered doubts about President Donald Trump's plans to lift the economy.

Trump's promises to cut taxes and boost spending has triggered expectations of faster inflation that could force the U.S. Federal Reserve to raise interest rates more than expected, potentially draining capital from emerging markets.

Trader skepticism over Trump's pledges grew after a second attempt by U.S. Senate Republicans to pass a healthcare reform bill failed, casting further doubt over the Fed's plan to hike rates once more this year.

Currencies from Brazil, Mexico, Chile and Colombia strengthened between 0.5 percent and 0.7 percent, extending gains last week.

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Wider emerging market stocks flirted with 27-month highs but Latin American bourses mostly fell as traders feared slower growth could translate into lower U.S. imports from key trading partners in the region.

Brazil's benchmark Bovespa stock index slipped 0.2 percent. Losses were limited by advances in shares of export-oriented companies, such as wood pulp maker Suzano Papel e Celulose SA.

Key Latin American stock indexes and currencies at 1650 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 1052.50 0.09 21.95 MSCI LatAm 2728.62 0.29 16.24 Brazil Bovespa 65105.99 -0.16 8.10 Mexico S&P/BVM IPC 51100.95 -0.45 11.96 Chile IPSA 5023.71 -0.46 21.01 Chile IGPA 25076.48 -0.38 20.94 Argentina MerVal 20927.04 -1.73 23.70 Colombia IGBC 10964.51 -0.79 8.26 Venezuela IBC 130240.12 -0.12 310.78 Currencies daily % YTD % change change Latest Brazil real 3.1565 0.74 2.94 Mexico peso 17.4965 0.53 18.56 Chile peso 655 0.70 2.40 Colombia peso 3016.4 0.48 -0.49 Peru sol 3.243 0.12 5.27 Argentina peso (interbank) 17.0250 -0.56 -6.75 Argentina peso (parallel) 17.78 -0.34 -5.40 (Editing by Jeffrey Benkoe)