* Colombia to raise 14 trillion pesos with new tax reform * Real hits over three-month high * Dollar at lowest in three days (Adds details on Colombia, updates prices) By Shashank Nayar and Ambar Warrick May 6 (Reuters) - Brazil"s real led gains across Latin American currencies on Thursday after the central bank pointed to more strong rate hikes, while the Colombian peso recovered from six-month lows on the prospect of a revised tax reform bill. The real rose 1.5% to 5.2831, its highest level since January after the central bank increased its benchmark rate by 75 basis points to 3.5% late on Wednesday. The central bank also hinted at another rate hike in June to help curb rising inflation and support an economy hurt by the COVID-19 pandemic. "The Brazilian central bank’s hawkish stance, which is in line with current inflation projections, has helped support the BRL, and signals of an additional rate hike next month will give more power to the real in the short term,” said Mauricio Une, senior economist at Rabobank. "However, there are fiscal risks that persist, which are primarily on account of rising coronavirus infections, which would in turn push the congress towards more stimulus measures to help support the economy." Colombia"s peso surged 1.2% to break a five-day losing streak after its new finance minister said the country would seek to raise 14 trillion pesos ($3.6 billion) with a new tax reform. Mass protests and lawmaker opposition forced the withdrawal of the previous bill and his predecessor"s resignation. Protests across the country still continued, although the capital Bogota appeared to be calmer. The protests were initially called in opposition to the withdrawn tax reform, but have now broadened to a call for government action to tackle poverty, police violence and inequality. A decline in the U.S. dollar also favored Latin American currencies and broader emerging market assets, as risk appetite improved ahead of key U.S. payrolls data on Friday. The currency of the world"s largest copper producer, Chile , gained 0.7% as copper prices flirted with 10-year peaks. MSCI"s index of Latin American currencies gained 1.4%, while stocks rose 1.8%. Shares of Brazilian state-run oil company Petrobras fell 1.5%, weighing down the Bovespa index after it reopened bidding for its Golfinho offshore oilfield cluster, two sources told Reuters this week, following a rise in crude prices over the last several months. State-run power company Eletrobras surged more than 3% after the Brazilian government said it hoped to complete the company"s privatization by 2022. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1341.21 0.61 MSCI LatAm 2449.06 1.83 Brazil Bovespa 119407.78 -0.13 Mexico IPC 48867.55 0.97 Chile IPSA 4623.55 -1.72 Argentina MerVal 49365.67 0.434 Colombia COLCAP 1256.27 1.31 Currencies Latest Daily % change Brazil real 5.2831 1.54 Mexico peso 20.0927 0.75 Chile peso 699.7 0.70 Colombia peso 3801.38 1.24 Peru sol 3.816 0.21 Argentina peso 93.7900 -0.03 (interbank) (Reporting by Shashank Nayar in Bengaluru; editing by Jonathan Oatis) Our Standards: The Thomson Reuters Trust Principles.