* U.S. dollar plunges after Fed, boosting Latam currencies
* Brazil real jumps 1.4 pct, Colombia peso up 1.1 pct
* Chile peso 1.9 percent stronger despite new FX measure (Adds comment from Colombia, updates prices)
By Samantha Pearson and Froilan Romero
SAO PAULO/SANTIAGO, Nov 4 (Reuters) - The currencies of Brazil, Chile and Colombia surged on Thursday after the United States said it would print billions of dollars to rescue its economy, pressuring Latin American countries to take counter-measures.
Much of Latin America is already struggling with sharply appreciating currencies that make exports less competitive and threaten growth. The U.S. Federal Reserve's latest plan to pump another $600 billion into the economy, announced on Wednesday, is likely to encourage even more inflows and make these problems worse. For details, see [ID:nTOE6A300V]
The Brazilian real and the Colombian peso rallied more than 1 percent on Thursday, while Chile's currency soared as much as 2.1 percent in early trading, its biggest one-day percentage gain in more than a year.
Chile was quick to fight back, but with little initial success.
The country's central bank said on Thursday it would raise foreign investment limits for pension funds to 80 percent from 60 percent in an effort to encourage outflows. [ID:nN04221079]
But the peso
The problem is that pension funds have chosen for many months to invest less than this amount outside Chile, said Flavia Cattan-Naslausky, a strategist at RBS Securities. Allowing them to invest even more abroad will not necessarily encourage them to do so, she said.
"This measure was very conservative and very much in line" with recent indications to the market, she said.
Minutes later, Brazil's finance minister also spoke out against the Fed's decision, saying his country would protest the move at the upcoming G20 meeting. [ID:nN04255229]
BRAZIL ON ALERT AGAIN
The Brazilian real
"If Brazil's central bank wants to maintain the real around 1.70 per dollar, it will have to be even more aggressive with its dollar purchases," said Miriam Tavares, currency director at brokerage AGK Corretora in Sao Paulo.
Brazil also introduced tax increases last month in an effort to curb a rally in the real, which is beginning to have a damaging effect on the real economy.
Data released on Thursday showed Brazil's industrial production continued to slow -- a trend some analysts attribute to the stronger currency. [ID:nN04172855]
Colombia's peso
"It was a blow to the measures that were put forward here last week," said Ana Vera, an analyst at Banco Popular in Colombia.
The country's government announced last Friday it would buy up to $3.7 billion in forwards markets during 2011, among other measures designed to curb the peso. [ID:nN29291838]
MEXICAN PESO SET TO OUTPERFORM?
The Mexican currency
It was boosted late in the previous session when most of the other currency markets had already closed, leaving the peso less room for appreciation on Thursday.
The peso was also shaken slightly by data showing new U.S. claims for unemployment benefits rose more than expected last week. [ID:nN03139160]
Mexico is more susceptible to changes in the outlook for the U.S. economy due to the two countries' strong trade links.
But analysts have begun to recommend the Mexican peso as one of the only currencies in the region that is not currently at risk from government intervention. (Additional reporting by Caroline Stauffer in Mexico City and Nelson Bocanegra in Bogota; Editing by Dan Grebler)