* G20 meeting offers little reassurance to region
* "Nothing ruled out" to halt Colombia peso appreciation (Recasts, updates prices)
By Samantha Pearson and Caroline Stauffer
SAO PAULO/MEXICO CITY, Nov 12 (Reuters) - Brazil's currency sank to its weakest levels since September on Friday and Mexico's peso dropped to a two-week low on concern over euro zone debt and speculation that China could hike interest rates.
Markets were also hurt by lingering fears about Ireland's fiscal health despite reassurance on Friday from EU leaders For details, see [ID:nTOE6AB04P], while weak growth data from the region added to concerns. [ID:nLDE6AB160]
Prices of the region's main commodities tumbled as analysts said higher inflation in China could lead the Asian giant to tighten monetary policy. This put pressure on Latin America's currencies. [ID:nSGE6AB09V]
Furthermore, a meeting in South Korea of leaders from the Group of 20 rich and emerging nations offered little reassurance to investors about the worldwide dispute over the level of some countries' currencies. [ID:nN11196971]
"It's a lot of bad news for just one day," said Reginaldo Galhardo, head of currency trading at the Treviso brokerage in Sao Paulo.
"There are doubts about global growth, rumors from China and Ireland continue to be a concern," he said. "With this currency war, the market is worried because who knows what will come of all of this."
The Brazilian real closed down 0.29 percent on the local spot market, bidding 1.722 per dollar, its lowest level since Sept. 20.
The Mexican currency
'NOTHING RULED OUT'
The Chilean peso
The Colombian peso
Like many of the region's currencies, the Colombian peso has rallied over recent months. The government has purchased dollars in the local market and considered other measures to slow those gains and protect exporters.
Colombia will try to avoid imposing Brazil-style capital controls to curtail the strength of its currency but "nothing is ruled out," Finance Minister Juan Carlos Echeverry told Reuters in an interview. [ID:nN12127423] (Editing by Dan Grebler)