* Brazil's Senate overturns presidential veto on public sector pay * Move could hit economy ministry's saving -analyst * U.S. weekly jobless claims back above 1 million * Oil, copper, iron ore prices slide (Adds details, updates prices) By Susan Mathew and Ambar Warrick Aug 20 (Reuters) - Brazil's real fell on Thursday, with broader Latin American currencies following suit after a warning from the U.S. Federal Reserve and weak economic data underscored a move out of risk assets. The real sank 0.6%, recouping a measure of the day's losses but still trading around three-month lows, while losses in Brazilian stocks were mitigated by heavyweight iron ore miner Vale. Brazil's Economy Minister Paulo Guedes called a Senate decision on Wednesday to overturn a presidential veto blocking public sector pay rises during the COVID-19 pandemic a "disaster" and a "crime" against the people. If the Chamber (of Deputies) approves the Senate's decision, "this could jeopardize the savings of 130 billion reais, which the economy ministry had expected," said analysts at CM Capital Markets. Amid investor worries that Brazil may exceed its pending cap, President Jair Bolsonaro said emergency payments to the country's poor could be extended through the end of the year. Guedes said Brazil's economy is recovering in the shape of a Nike "swoosh". Data also showed that federal tax revenue in Latin America's largest economy fell to its lowest since 2009 due to continued pressure from the coronavirus pandemic. Investors fled to safe havens such as the dollar and gold after the Fed said more policy easing may be needed to help the economy out of a pandemic-induced slump. Data on Thursday showed new claims for unemployment benefits rose above 1 million in the latest week. Oil, iron ore and metal prices fell, pressuring assets in commodity-heavy Latam. The Mexican peso was flat and Chile's currency slid about 0.5%, while Colombia's currency lost 0.8%. Their stock markets were muted, in line with lackluster moves on Wall Street. Surging number of COVID-19 cases in Latam also weighed but some optimism came from Brazil's health ministry which said the spread of the virus in the country could be about to slow. Elsewhere in the emerging markets, Turkey's lira lost 0.3% against the dollar after the central bank held its key rate steady as expected despite the lira hitting record lows this week. The bank will continue back-door liquidity measures, it said, and raised forex and lira required reserve ratios for commercial banks. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1080.79 -1.69 MSCI LatAm 1962.94 -1.07 Brazil Bovespa 100699.98 -0.15 Mexico IPC 38712.74 -0.79 Chile IPSA 3974.53 -0.61 Argentina MerVal 47539.25 0.143 Colombia COLCAP 1171.39 0.83 Currencies Latest Daily % change Brazil real 5.5651 -0.64 Mexico peso 22.1315 -0.04 Chile peso 787.7 -0.48 Colombia peso 3789 -0.89 Peru sol 3.5768 -0.42 Argentina peso 73.5200 -0.05 (interbank) (Reporting by Susan Mathew in Bengaluru; Additional reporting by Maria Carolina Marcello and Gabriel Ponte in Brasilia Editing by Paul Simao and Alistair Bell)
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