* Sol drops on Vizcarra"s removal * MSCI currencies index down * Brazil"s Embraer falls after Q3 loss (Updates prices throughout) By Ambar Warrick and Shreyashi Sanyal Nov 10 (Reuters) - Peru"s sol was set for its worst day in five months on Tuesday after the removal of President Martín Vizcarra, while other Latin American currencies extended a rally from the prior session after news of a COVID-19 vaccine breakthrough. The sol dropped 1.1%, while Peru"s dollar-denominated government bonds tumbled after the country"s Congress ousted Vizcarra over corruption allegations. The move sparked immediate political tensions in the Andean country, which is already struggling from the economic fallout of the coronavirus pandemic. Mexico"s and Colombia"s pesos rose after having led gains on Monday, capitalizing on a surge in oil prices after news of U.S. drugmaker Pfizer and its German partner BioNTech"s potential coronavirus vaccine. "While the tremendous vaccine result is likely to underpin markets from here, investors shouldn"t be too gung-ho with their portfolio," said Laith Khalaf, financial analyst at AJ Bell. "The vaccine result clearly raises hopes that a return to normality is within touching distance, and while that is extremely positive for markets and businesses, we should be mindful that the economic impact of the pandemic is still being felt around the globe." Joe Biden"s U.S. presidential election win also fed risk appetite, on the prospect of calmer U.S. trade policies. Chile"s peso firmed 0.2% to the dollar, as copper prices stayed near 29-month highs. For the day, the MSCI"s index of Latam stocks rose 0.6%, while a currencies index retreated 0.5%. Emerging market economies remained under pressure from the pandemic, as lockdowns due to the virus exacerbated existing issues such as inflation and fiscal spending. Brazil"s real struggled for direction on Tuesday, after the currency unexpectedly pared all of its strong gains on Monday. Analysts were cautious about the real"s prospects, even as Latin America"s largest economy slowly recovered from the pandemic. "Although the Brazilian economy seems to be recovering well, the low key interest rate level, the lack of clarity regarding public finances and faltering reform plans against the background of the corona pandemic are likely to continue to weigh on the real," Commerzbank analysts wrote in a note. Brazilian stocks rose about 0.5%. But planemaker Embraer SA sank more than 3% after it posted a third-quarter loss and said it was preparing for a challenging 2021. Argentina"s peso retreated slightly after the country"s economy minister said it will seek an extended fund facility from the International Monetary Fund to replace a failed $57 billion facility. The country recently emerged from a sovereign debt restructuring after countless defaults. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1179.54 -1.08 MSCI LatAm 2122.19 0.9 Brazil Bovespa 105395.20 1.82 Mexico IPC 40267.10 1.55 Chile IPSA 3977.45 1.25 Argentina MerVal 51642.02 4.011 Colombia COLCAP 1213.32 -0.03 Currencies Latest Daily % change Brazil real 5.3800 0.08 Mexico peso 20.2900 0.19 Chile peso 755.7 0.22 Colombia peso 3627.75 0.53 Peru sol 3.6228 -1.16 Argentina peso (interbank) 79.4300 -0.10 Argentina peso (parallel) 145 4.14 (Reporting by Ambar Warrick and Shreyashi Sanyal in Bengaluru;