(Adds dropped word in headline) * Brazil rate decision awaited * Telefonica Brasil down after missing qrtly profit estimates * Stocks off 0.7%, FX down 0.5% By Shashwat Chauhan May 8 (Reuters) - Currencies of most resource-rich Latin American nations slipped on Wednesday, as softening commodity prices on a stronger dollar weighed, while Brazil's real was amongst top losers ahead of a likely interest rate cut later in the day. The Brazilian currency shed 0.2% against the dollar as iron ore prices, one of the country's top exports, came under pressure. The Brazilian central bank's rate-setting committee is widely expected to cut interest rates by at least 25 basis points later in the day, a third rate cut this year. "There are reasons for Brazil's BCB to be more cautious/hawkish when it meets today: the recent weakness in the BRL, a slowdown in disinflation, fiscal expansiveness, and adverse supply-side shocks (floods)," said Thierry Wizman, global FX & rates strategist at Macquarie. "But the longer-term narrative is still of a BCB that will get more dovish as time goes on, with its ongoing staff changes and alignment with the administration." Oil producer Mexico's peso lost 0.3% against the dollar as crude oil prices fell after industry data showed a rise in crude and fuel inventories in the U.S. and the greenback strengthened. Currency of fellow oil producer Colombia also shed 0.3% ahead of the release of April consumer prices data later in the day. Top copper producer Chile's peso depreciated 0.2% against the greenback as prices of the red metal came under pressure, while Peru's sol also lost 0.4%. As of 10:22 a.m. ET (1422 GMT), MSCI's index for Latin American currencies lost 0.5% on track to snap a four-day winning streak, while a gauge of stocks lost 0.7%. Shares in regional heavyweight Brazil fell over 4% as downbeat earnings weighed, while bourses in Mexico and Colombia eased 0.7% and 0.1%, respectively. Brazilian telecommunications operator Telefonica Brasil slipped more than 5% after posting a net profit below analysts' expectations. Ambev SA posted a small decline in net profit for the first quarter but handily beat market expectations. Shares of the Brazilian brewer, however, slipped around 5%. On the data front, retail sales volumes in Brazil remained unchanged in March from February, while consumer prices in Chile rose more than expected in April. HIGHLIGHTS ** Brazil polls show mixed scenario for Lula's approval ratings ** Brazil floods leave 150,000 homeless, scores dead or missing Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1066.11 -0.2 MSCI LatAm 2493.04 -0.72 Brazil Bovespa 129086.40 -0.1 Mexico IPC 56697.54 -0.72 Chile IPSA 6579.70 1.28 Argentina MerVal 1485982.75 1.528 Colombia COLCAP 1378.72 -0.14 Currencies Latest Daily % change Brazil real 5.0815 -0.29 Mexico peso 16.9250 -0.29 Chile peso 938.8 -0.20 Colombia peso 3900.82 -0.29 Peru sol 3.7229 -0.37 Argentina peso (interbank) 881.5000 -0.06 (Reporting by Shashwat Chauhan in Bengaluru; editing by Philippa Fletcher)