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 IBC-Br economic activity index up in February * Chile central bank considered 75 or 100 bp cut in April- minutes * Latam stocks and currencies up 0.8% each By Bansari Mayur Kamdar April 17 (Reuters) - Currencies in Latin America bounced back on Wednesday, after five straight sessions of losses, as the dollar weakened, while strong earnings reports also supported beleaguered regional bourses. The MSCI index for Latin American currencies gained 0.8% by 1437 GMT after dropping 1.9% on Tuesday and posting its worst daily performance in over a year. The Latin American stocks index added 0.8% and was down nearly 10% so far this year. Both indexes had 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. Currencies of Brazil, Chile, Mexico, Colombia and Peru gained between 0.7% and 1% against the softening dollar after sharp losses this week. 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%. According to the central bank, the economy is grappling with weak domestic demand despite recent improvements. Peso depreciation and global cost shocks have added pressure on prices, but these are expected to ease within the monetary policy horizon. Strong copper prices also boosted the currency of Chile , the top producer of the metal, and No.2 producer Peru's sol. The Mexican peso retreated from 17 pesos per dollar after a member of the central bank's governing board said in an interview the country's stubborn inflation requires cautious monetary policy, warning it may be necessary to continue with a restrictive policy. Boosting sentiment in the largest economy in Latin America, 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." The Bovespa index ticked lower, but a 1.8% gain in Vale capped losses after the miner reported growth of 6.1% in its first-quarter iron ore production from a year earlier. Petrobras shares struggled for direction after the company confirmed late on Tuesday a Brazilian court overturned a previous ruling from a lower tribunal that had suspended state-run oil firm Chairman Pietro Sampaio Mendes from his role. Mexico's Grupo Financiero Banorte rose 1.8% on reporting a 9% rise in first-quarter net profit from the year-ago period, citing growth in its loan book. The stock index gained 0.2%. Also in focus, the Biden administration has signaled that it could reimpose oil sanctions on Venezuela on Thursday in response to what U.S. officials see as President Nicolas Maduro's failure to meet his commitments for free and fair elections this year. Elsewhere in emerging markets, the Indonesian rupiah hit a four-year low, extending weakness against the greenback, while the South African rand edged higher after data showed inflation slowed slightly more than expected in March. Investor continued to focus on discussions between finance ministers and central bankers attending the IMF and World Bank Spring meetings this week. The International Monetary Fund's Board has backed a key change to give it more freedom to support crisis-hit countries even if debt renegotiations with big creditor governments like China are still ongoing. Key Latin American stock indexes and currencies at 1437 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1012.94 0.31 MSCI LatAm 2392.43 0.74 Brazil Bovespa 124344.54 -0.04 Mexico IPC 55902.05 0.19 Chile IPSA 6425.44 -0.08 Argentina MerVal 1204309.56 0.089 Colombia COLCAP 1361.32 -0.51 Currencies Latest Daily % change Brazil real 5.2387 0.56 Mexico peso 16.9630 0.53 Chile peso 972.8 0.73 Colombia peso 3893.37 0.69 Peru sol 3.743 0.14 Argentina peso (interbank) 869.0000 0.00 Argentina peso (parallel) 1015 1.97 (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Andrea Ricci)