* Bolsonaro seen as risk factor for Brazil IPO pipeline * SoftBank renews LatAm bet, to launch $3 bln investment fund (Adds comments, bullets, updates prices throughout) By Susan Mathew and Shreyashi Sanyal Sept 14 (Reuters) - Latin American currencies fell on Tuesday after tamer-than-expected U.S. inflation data left questions about the Federal Reserve"s next move, with Brazil"s real leading declines in the region. The MSCI"s index for Latin American currencies fell 0.5%, with Brazil"s real down 0.6% against the dollar. While prospects of further interest rate hikes in Brazil lend some support, tensions ahead of elections next year are weighing on the real and companies have cited political upheaval from far-right President Jair Bolsonaro as a new risk factor for initial public offerings. Last week, pro-Bolsonaro marches took place across the country, with the president calling on Supreme Court Justice Alexandre de Moraes to step down and said he would no longer comply with his rulings. He later sought to smooth over the relationship. "In Brazil, the focus will stay on politics and more specifically on whether the truce between the president and the Supreme Court will be a lasting one," said economists at Deutsche Bank. Brazil"s central bank is likely to intervene in the currency market due to seasonal demand for dollars concentrated near the end of the year, its chief Roberto Campos Neto said. Meanwhile, Japan"s SoftBank Group renewed its LatAm bet, launching a $3 billion fund to invest in technology companies in the region. The dollar index, which measures the greenback against six major rivals, fell up to 0.4% as data showed underlying U.S. consumer prices rose at their slowest pace in six months, creating uncertainty about the Fed"s stance on stimulus tapering. "While the inflation numbers might be the start of some "relief" and positive for high beta/risk currencies, we think the market will need to get through the Fed meeting first before it can break "free"," strategists at TD Securities said. Mexico"s peso retreated further from four-week highs, down 0.2%. The currency, which has largely been on an upward trend, has gained 2.5% over the last 12 sessions. Ratings agency Fitch on Monday warned that Mexico"s weakening governance is raising credit uncertainties, citing energy, utilities, infrastructure and financial institutions as the most affected. Among stocks, Brazil"s BTG Pactual jumped almost 3% on a report that Singapore"s state investor GIC Pte Ltd is investing $421 million into the lender"s private equity fund that controls fiber optic company V.tal. Key Latin American stock indexes and currencies at 1908 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1295.71 -0.45 MSCI LatAm 2412.39 -0.53 Brazil Bovespa 116579.75 0.15 Mexico IPC 51821.67 0.63 Chile IPSA 4409.79 0.19 Argentina MerVal 78637.47 -1.784 Colombia COLCAP 1307.57 -0.37 Currencies Latest Daily % change Brazil real 5.2534 -0.59 Mexico peso 19.9113 -0.23 Chile peso 783.9 0.05 Colombia peso 3821.74 0.17 Peru sol 4.0951 0.02 Argentina peso (interbank) 98.2100 -0.02 Argentina peso (parallel) 179.5 0.84 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by Alexander Smith and Rosalba O"Brien)