UPDATE 1-UBS's legal reserves dip; Puerto Rico probe widened
* Legal reserves 2.368 bln Sfr at end-Q2
* Down from 2.727 bln Sfr in previous quarter
* Disclosure in second-quarter report
* Details widening U.S. probe into Puerto Rico unit (Adds detail on mortgage probe and French investigation)
By Katharina Bart
ZURICH, July 28 (Reuters) - U.S. authorities have widened a probe into bond funds sold by UBS's Puerto Rico arm, the Swiss bank announced on Tuesday, alongside figures showing it has used up some of the money it set aside to cover legal costs and regulatory fines.
Zurich-based UBS's legal reserves were disclosed in a ten-page section on pending litigation in its second-quarter report, a day after financial results.
They stood at 2.37 billion Swiss francs ($2.46 billion) at the end of June, down from 2.73 billion francs the previous quarter.
The reserves fell after UBS in May became one of four major banks to plead guilty to trying to manipulate foreign exchange rates in the $5-trillion-a-day currency market, paying $545 million in combined fines. Continuación...