EMERGING MARKETS-Latam stocks, currencies snap 5-day losing streak as dollar recedes

* US signals Venezuela oil sanctions relief at risk as deadline looms * Brazil's Campos Neto opens door to slowing pace of rate cuts * Brazil's IBC-Br economic activity index up in February * Chile central bank considered 75 or 100 bp cut in April- minutes * Latam stocks up 0.5%, currencies up 0.7% (Updated at 3:30pm ET/1930 GMT) By Bansari Mayur Kamdar April 17 (Reuters) - Currencies in Latin America bounced back on Wednesday, after five straight sessions of losses, as the dollar took a breather, while strong earnings reports also supported beleaguered regional bourses. The MSCI index for Latin American currencies gained 0.7% after dropping 1.9% on Tuesday and posting its worst daily performance in over a year. The Latin American stocks index added 0.5%. The index is down nearly 10% year-to-date. Regional markets posted a rough start to the week as the firm dollar pummeled riskier assets on concerns around violence in the Middle East escalating and diminishing hopes regarding Federal Reserve rate cuts. The currencies of Brazil, Chile, Mexico , Colombia and Peru gained between 0.3% and 0.5% against the softening dollar after sharp losses this week. Boosting sentiment in Latin America's largest economy in, data showed economic activity in Brazil rose in line with estimates in February from the month before, posting its fourth straight rise. "The headline confirms that the economy enjoyed a decent start to the year, thanks to the boost from declining inflation, interest rate cuts and a still-healthy labour market," said Andres Abadia, chief Latam economist at Pantheon Macroeconomics. "Risks remain tilted to the downside, however, particularly over Q2, as activity in key sectors remains under strain, necessitating further policy normalisation." Also helping the real, Brazil's central bank chief Roberto Campos Neto hinted the monetary authority could reduce the pace of its ongoing easing cycle as global and local uncertainties increase. In Chile, minutes from its April meeting showed the Central Bank of Chile considered reducing the country's benchmark interest rate by 75 or 100 basis points. It ended up cutting rates by 75 bps to 6.50%. The Mexican peso retreated from 17 pesos per dollar after a central bank official said the country's stubborn inflation still requires cautious monetary policy. Brazil's Bovespa index ticked 0.3% lower, but a 1% gain in Vale capped losses after the miner reported growth of 6.1% in its first-quarter iron ore production from a year earlier. Mexico's Grupo Financiero Banorte rose about 1% on reporting a 9% rise in first-quarter net profit from the year-ago period, citing growth in its loan book. Ecuadorean bonds rallied, with yield spreads as measured by JPMorgan's EMBIGD index narrowing by 70 basis points, after signs the South American country is close to securing a deal with the International Monetary Fund. HIGHLIGHTS ** IMF moves to blunt Chinese debt deal delays with lending policy change ** Bank of Korea chief signals readiness to deal with volatile currency moves ** Biden administration signals it could reimpose oil sanctions on Venezuela Key Latin American stock indexes and currencies at 1930 GMT: Latest Daily % change MSCI Emerging Markets 1013.32 0.34 MSCI LatAm 2386.65 0.5 Brazil Bovespa 124081.85 -0.25 Mexico IPC 55484.05 -0.56 Chile IPSA 6435.14 0.07 Argentina MerVal 1173581.27 -2.465 Colombia COLCAP 1355.86 -0.91 Currencies Latest Daily % change Brazil real 5.2403 0.53 Mexico peso 16.9682 0.50 Chile peso 976.7 0.33 Colombia peso 3892.32 0.72 Peru sol 3.7337 0.39 Argentina peso 869.0000 0.00 (interbank) Argentina peso 1010 2.48 (parallel) (Reporting by Bansari Mayur Kamdar and Lisa Mattackal in Bengaluru; Editing by Andrea Ricci and Marguerita Choy)