* Brazilian real reverses early gains * Peruvian sol rises more than 1% * Chilean peso falls as copper drops (Adds market analyst"s comments, updates prices throughout) By Shreyashi Sanyal and Susan Mathew June 9 (Reuters) - Most Latin American currencies edged lower by afternoon trading on Wednesday as the dollar regained footing ahead of U.S. inflation data later in the week, while Peru"s sol bounced from record lows amid a tight presidential election. Brazil"s real fell 0.6% after firming as much as 0.3%. Annual inflation came in above expectations, hitting 8% for the first time in four years and making a stronger case for an interest rate hike by Brazil"s monetary policy committee, Copom. "Copom will (also) probably signal that another 75 basis point hike is on the cards at the subsequent meeting in August," said William Jackson, chief EM economist at Capital Economics. The central bank is due to meet next week and Capital Economics and Citi expect it to hike by 75 basis points to 4.25%. Peru"s currency jumped 2.3%. Vote counting after a presidential election over the weekend is almost drawing to a close with socialist Pedro Castillo leading over rival Keiko Fujimori. Right-wing conservative Fujimori is expected to find support from overseas votes, and with some ballots being contested, the results may take time to be declared. "We have noted that as the votes cast abroad are accounted for, it is likely that the difference between Pedro Castillo and Keiko Fujimori will narrow," said Credit Suisse analyst Alberto Rojas. "We think that it could take several days until we know who won the second round presidential election." Losses for the sol currency now stand at 8% since Castillo"s surprise win in the first round vote in April. The dollar firmed with all eyes now on U.S. inflation numbers and the European Central Bank"s meeting on Thursday to see if major central banks will start the withdrawal process for pandemic- induced stimulus. In Mexico, inflation rose again in May, but the central bank will likely stand pat on interest rates as long as core inflation falls back in the next few months, Jackson at Capital Economics said. Mexico"s peso edged 0.2% lower, snapping a three-day winning streak but remained close to its 2021 highs hit in January. The currency has turned positive for the year, following a rally spurred by mid-term election results that lessened the likelihood of sweeping changes to market friendly policies. Chile"s peso inched 0.2% lower after a dip in prices of copper, its main export. Chile"s central bank late on Tuesday kept interest rates unchanged at 0.5%, in line with expectations. Latin American stock indexes and currencies at 1846 GMT; Stock indexes Latest Daily % change MSCI Emerging Markets 1372.80 -0.34 MSCI LatAm 2668.34 -0.14 Brazil Bovespa 130423.34 0.49 Mexico IPC 50916.40 0.1 Chile IPSA 4228.13 1.34 Argentina MerVal 68128.53 2.618 Colombia COLCAP 1259.11 0.04 Currencies Latest Daily % change Brazil real 5.0661 -0.63 Mexico peso 19.7430 -0.25 Chile peso 720.6 -0.37 Colombia peso 3586.93 0.15 Peru sol 3.8358 2.32 Argentina peso (interbank) 95.0500 -0.03 Argentina peso (parallel) 153 1.96 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by Emelia Sithole-Matarise and Grant McCool) Our Standards: The Thomson Reuters Trust Principles.