* Chile's Codelco resumes operation despite strike

* Czech c.bank raises rates by 125-bps (Updates prices)

By Shreyashi Sanyal and Susan Mathew

June 22 (Reuters) - Chile's peso hit a record low on Wednesday, underperforming most Latin American peers, as copper prices plunged on growth worries, and as a workers' strike at the Codelco mine raised fears about a hit to the country's production of the red metal.

The peso CLP= was last down 1.5%, having touched an all-time low of 890.70 per dollar.

Codelco, the world's largest copper producer, has resumed operations despite the strike, the government said, seeking to dispel concerns over an impact on operations.

Meanwhile, copper prices CMCU3 slumped to their lowest level in over a year on demand worries as fears rise that rapid interest rate hikes would topple the global economy into recession as China grapples with COVID-19 lockdowns.

U.S. Federal Reserve Chair Jerome Powell reiterated on Wednesday that the central bank is "strongly committed" to controlling inflation. A Reuters poll suggested the Fed is set to increase by 75 basis points again in July, followed by a 50bps hike.

"Powell's remarks, while hawkish, didn't alter the outlook for continued rate hikes into next year and kept the door open to rate cuts by 2024," said Joe Manimbo, senior market analyst, Western Union Business Solutions, Washington.

The dollar .DXY fell, helping some gains in Latam currencies.

Peru's sol PEN= and the Colombian peso COP= rose around 0.1% each, while the Mexican peso MXN= firmed 0.6% ahead of another likely interest rate hike by its central bank on Thursday.

In Czech Republic, the central bank raised its main interest rate by 125 basis points to 7.00%, extending a year-long policy tightening drive to battle inflation.

More central bank action is due through the week, with Egypt's and Philippines seen raising rates, while Indonesia and Turkey are likely seen holding rates.

While rate hikes in keep emerging market currencies competitive for carry trades, fears that tightening by major central banks of the world will cause a global recession and hurt flows into risky assets, have hit sentiment off late.

Brazil's real BRBY BRL= weakened 0.2%, giving back a chunk of the previous session's gains. Prices of iron ore, a significant export revenue item for Brazil, fell to 16-week lows on oversupply worries.

But while most other regional stock indices fell, Sao Paulo shares .BVSP erased session losses to rise 0.2%.

Brazilian banks gained, with BTG Pactual BPAC11.SA up 6% after Itau BBA was upbeat about BTG's earnings, helping counter losses in heavyweight iron ore miner Vale VALE3.SA .

Key Latin American stock indexes and currencies at 1916 GMT: Stock indexes

Latest

Daily %

change MSCI Emerging Markets

994.16

-2.24 .MSCIEF

MSCI LatAm

2088.24

-0.71 .MILA00000PUS

Brazil Bovespa

99893.48

0.21 .BVSP

Mexico IPC

47472.88

-1.31 .MXX

Chile IPSA

5080.21

-0.09 .SPIPSA

Argentina MerVal

86129.58 -0.481 .MERV

Colombia COLCAP

1389.29

-0.65 .COLCAP

Currencies

Latest

Daily %

change Brazil real

5.1641

-0.22 BRBY

Mexico peso

20.0000

0.58 MXN=D2

Chile peso

888.4

-0.71 CLP=CL

Colombia peso COP=

4014.88

-0.10 Peru sol

3.7162

-0.19 PEN=PE

Argentina peso

123.8500

-0.14 (interbank) ARS=RASL

Reporting by Shreyashi Sanyal in Bengaluru; Editing by Angus MacSwan and Richard Chang