EMERGING MARKETS-Latam FX mixed after Fed rate decision, Chile's peso hits new low

(Updates market prices)

By Sruthi Shankar

Oct 30 (Reuters) - Latin American currencies were mixed on Wednesday as the dollar teetered after the U.S. Federal Reserve cut interest rates as expected, but signalled a pause in further rate cuts.

Chile's peso CLP= led declines among the regional currencies, weakening 1.6% to a record low after poor mining data, while currencies of Brazil BRL= and Mexico MXN= gained 0.4% and 0.02%, respectively.

The dollar index hit a session high initially after the U.S. central bank cut policy rate by a quarter of a percentage point as expected, but dropped reference that it "will act as appropriate" to sustain the economic expansion in its policy statement - language that was considered a sign for future rate cuts. FRX/

The greenback, however, lost steam after the Fed chief Jerome Powell said the U.S. central bank is not thinking of raising rates right now. bit of a change there that suggests that it's going to take a little bit more weakness from here on out for the Fed to lower rates," said Bipan Rai, North American head of FX strategy at CIBC Capital Markets.

"And really it's going to take quite a sustained turn for the worse in terms of trade discussions, and that should to a degree cap dollar bearishness in the near term."

The developing world has witnessed capital inflows this year on expectations that major central banks will offset any slowdown in global growth in the wake of trade disputes. The Fed's move followed data earlier showing the U.S. economy slowed less than expected in the third quarter. central bank is expected to slash the key rate by 50 basis points, also for the third time this year. The real, however reversed early losses ahead of the decision due after 2100 GMT. peso slid and stocks tumbled 2.8% to a eight-week trough. The country's manufacturing production dropped in September from a year ago amid a decrease in mining production, government data showed. worry about deteriorating economic activity in Chile - the world's biggest producer of copper as a recent political crisis has seen union workers at BHP's Escondida copper miner go on strike. Sebastian Pinera said Chile will suspend hosting the Asia Pacific summit next month. The United States and China were expected to sign a partial trade agreement at the summit, but Reuters reported U.S. officials warning the deal may not be ready by then. had hit sentiment globally earlier. MKTS/GLOB

Brazil's Bovepsa stock index .BVSP gave up early losses to gain 0.7% with retailer Magazine Luiza SA's MGLU4.SA zooming 7% after upbeat earnings report and fourth-quarter earnings forecast. processor Cielo SA CIEL3.SA was down 3.8% after poor quarterly results while the Brazilian unit of lender Santander SANB11.SA fell despite beating estimates on results as its Spanish parent SAN.MC posted a 75% decline in third-quarter profit. other earnings, Colombia's state-run oil company Ecopetrol ECO.CN said its investment spending this year could reach between $4.4 billion and $5 billion and reported a rise in third-quarter net profit. Its stock was down 0.5%. Latin American stock indexes and currencies at 1931 GMT:

Stock indexes

Latest

Daily % change MSCI Emerging Markets

1042.41

-0.13 .MSCIEF

MSCI LatAm .MILA00000PUS

2811.79

0.03 Brazil Bovespa

.BVSP

108274.75

0.67 Mexico IPC

.MXX