* Brazil"s credit conditions improve in February * Argentina"s biggest province extends $7 bln debt deadline again * Bolsonaro"s govt replaces key Banco do Brasil board members (Adds bullets, background; updates prices throughout) By Shreyashi Sanyal March 29 (Reuters) - Currencies in Latin America weakened on Monday against a strengthening dollar on the improving U.S. economic outlook, with the Colombian peso leading declines. Colombia"s peso fell 0.8% against the dollar, even as oil prices stabilized. Among other Latin American currencies, Chile"s peso slipped 0.1% after falling at least 1% earlier in the day. Chile"s central bank, which holds a monetary policy committee meeting on Tuesday, is not expected to move rates, with markets pricing in two rate hikes by the end of the year. Like most emerging market central banks recently, Chile is expected to sound a bit more hawkish. Brazil"s central bank minutes showed officials discussing more interest rate hikes, last week. "The global rate-cutting cycle that occurred in the wake of the pandemic has ended and even begun to reverse," economists at Capital Economics wrote in a client note. "But in the face of rising inflation, several emerging market central banks hiked interest rates, and by more than most expected." Separately, Chilean President Sebastian Pinera said on Sunday he will ask Congress to postpone the election of an assembly to write a new constitution for the country from April until May due to a rise in coronavirus cases. The Brazilian real weakened 0.7% against the dollar, while Mexico"s peso slipped 0.6%. The MSCI"s index for Latin American currencies fell 0.8%. A survey showed a fall in Brazil"s services sector confidence accelerated in March to its lowest since June last year as a deadly second wave of the COVID-19 pandemic darkened the outlook for businesses and consumers. Credit conditions in Brazil improved in February, central bank figures showed, as a broad measure of consumer and business default ratios held steady at a decade low, bank lending spreads narrowed, and credit growth rose. High-yielding emerging market currencies have come under pressure this month from rising U.S. bond yields, which have surged on expectations of higher inflation and pushed up demand for the dollar. The Turkish lira was among the few emerging market currencies to strengthen against the dollar as Sahap Kavcioglu, the new central bank governor who was appointed in a shock overhaul this month, played down "prejudiced" expectations of an interest rate cut in April or the following months. Argentina"s Buenos Aires province said it would extend the deadline for its $7 billion foreign debt restructuring until April 23, amid rising tensions with creditors after a year of negotiations that have failed to reach an agreement. Stocks across Latin American markets were flat to lower, with the MSCI"s index for Latam equities down 0.6%. The Brazilian government nominated three new board members at state-controlled lender Banco do Brasil, according to a Monday filing, after Andre Brandao quit as chief executive earlier this month under pressure from President Jair Bolsonaro. Key Latin American stock indexes and currencies at 1911 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1309.07 0.12 MSCI LatAm 2245.77 -0.62 Brazil Bovespa 115098.34 0.28 Mexico IPC 47504.17 0.26 Chile IPSA 4916.67 1.27 Argentina MerVal 47045.10 1.301 Colombia COLCAP 1313.99 -0.04 Currencies Latest Daily % change Brazil real 5.7795 -0.71 Mexico peso 20.6190 -0.19 Chile peso 732.7 -0.11 Colombia peso 3716.24 -0.78 Peru sol 3.7498 -0.47 Argentina peso (interbank) 91.9100 -0.07 Argentina peso (parallel) 139 2.16 (Reporting by Shreyashi Sanyal in Bengaluru Editing by Alistair Bell and Sonya Hepinstall)