Brazil's cenbank chief's comments worried - trader Latam peers underperforms Brazilian stocks for the week Argentine markets in wait-and-see mode - trader Vale declares bumper first-half dividend Of Susan Mathew Reuters sept 17 : – Brazil's Val declared 1% lead losses across Latin American currencies on Friday with all eyes on the central bank's policy meeting next week, while mining major Vale declared a bumper $7.6 billion first-half dividend payout The regional index is down around 1.7% for the week, the worst performer among real peers. Next week, the Central Bank is likely to hike interest rates by 100 basis points as inflation surges. However traders are cautious after central bank chief Roberto Campos Neto said earlier this week that he will not change his plans with every indicator showing high inflation pressures, signaling he might hint at a ceiling for the current tightening cycle. Commentary from Neto seemed to indicate there is no interest to combat inflation with more rate hikes, said Juan Perez, a senior currency traded at Tempus Consulting. This is scaring traders because the idea was to count on tightening, but the lack of concern from the official is making many think they will stop. Political sentiment also weighed on the real as investors feared populist policies by President Jair Bolsonaro with his popularity sliding ahead of elections next year. Bolsonaro signed a decree on Thursday to increase taxes on financial transactions - charged on credit, foreign exchange, insurance transactions, or bonds or securities - for three months to pay for the so called Auxilio Brasil pandemic welfare program. Colombia's peso gave up 0.5%, while Mexico's was flat as oil prices fell. In Argentina, the benchmark global bond of 2035 dollar was slightly weakened. Argentina's center-left president Alberto Fernandez called for unity on Thursday, after a rebellion from hard-left ministers threatened to break the ruling coalition following a bruising loss in a midterm primary election. Markets will likely go to a wait-and-see approach, as the government tries to take the reins, Tempus' Perez said. Among shares, iron ore miner Vale gave up fleeting gains to lose almost 3% and hit seven-month lows, tracking a 7% fall in prices of the steelmaking ingredient. The company declared a 40.2 billion real, or 8.11 reais $1.54 per share, first half dividend on Thursday, the largest payout since the miner's 2019 dam collapse. Bovespa index was down 1.7%, extending losses to the fourth straight session. It was set to underperform the Latam peers last week, down almost 2%. El Salvador bonds are on alert after a slowdown last session on fears the country will not reach a potential $1 billion loan deal with the International Monetary Fund and faces negative credit implications linked to its usage of bitcoin