EMERGING MARKETS-Latam currencies down again on U.S. rates outlook

SAO PAULO, May 27 (Reuters) - Latin American currencies weakened on Wednesday on the outlook for higher U.S. interest rates, with Brazil's real falling to its lowest in nearly two months on concern about the progress of a recent budget-tightening initiative. Equities were little-changed across the region, with the broad MSCI Latin American stock index trading nearly flat. With few major economic indicators on Wednesday, traders continued to trade on the outlook for U.S. interest rates.