By Purvi Agarwal

Feb 21 (Reuters) - Most Latin American currencies were higher against the dollar on Friday, but an index tracking them was set for gains in a week packed with developments on U.S. tariffs and geopolitical conflicts.

MSCI's index tracking Latin American currencies .MILA00000CUS was up 0.1%, set for its seventh week of gains, its longest winning streak since October 2010.

Markets looked past President Donald Trump's threats of new tariffs on semiconductor chips and automobiles, among other products, as they increasingly look at them as a negotiating tactic. A rally in the dollar =USD also lost some steam this week.

"The most important source of volatility had been tariffs, but so far, we see these as largely still within expectations. Bigger tariff sticks after April 1st could keep EM FX vulnerable," Citigroup analysts said.

"EM markets have remained surprisingly resilient to the turbulent noise around Trump 2.0 so far."

Analysts at LMAX Group also said the resilience bolstered risk appetite and opened up a wave of dollar outflows.

The Mexican peso MXN= was flat. Mexico's economy shrank in the fourth quarter for the first time in more than three years, data showed.

The Brazilian real BRL= and the Argentine peso ARS= were little changed, while Colombia's peso COP= strengthened 0.3%.

Peru's sol PEN= was an outlier, falling 0.1% against the dollar.

Equity indexes in the region were mixed on the day. Most indexes were set for weekly gains except those in Brazil .BVSP and Chile .SPIPSA. Colombia's COLCAP .COLCAP was set to outperform, with more than a 5% gain.

MSCI's index of Latin American stocks .MILA00000PUS was 1.3% lower, set to snap a six-week string of gains.

Meanwhile, Reuters reported that Russia could agree to using $300 billion of sovereign assets frozen in Europe for reconstruction in Ukraine.

Another report said Ukraine and U.S. negotiators are looking to finalize a deal on critical minerals.

On the day, Ukraine's bonds broadly bounced more than 2 cents to the dollar each.

Ukraine's GDP warrant XS1303929894=TE fell as much as 5 cents this week, as hopes of a ceasefire faded, while its 2036 XS2895057334=TE and 2035 XS2895057177=TE bonds were set for their worst week on record, since a restructuring last year.

The Russian rouble RUB= gave back early gains and was last down 0.7% against the dollar, over-the-counter market data showed.

Trump's envoy met Ukraine's president on Thursday, but there was no immediate word on whether their talks had helped smooth over an unprecedented wartime rift between the once firm allies. Russia and the U.S. held talks in Riyadh earlier this week that excluded Ukraine.

Meanwhile, BofA Global Research showed that outflows from emerging market equity funds stood at $5.3 billion this week.

Highlights:

** Brazil sees challenge to bring in non-payers in tax overhaul

** Arab states scramble to counter Trump's Gaza 'Riviera' plan

** Brazil's central bank has no exchange rate target, says director

Key Latin American stock indexes and currencies at 1502 GMT:

(Reporting by Purvi Agarwal in Bengaluru; Editing by Paul Simao)

((Purvi.Agarwal@thomsonreuters.com;))