*

Brazil's c.bank chief says neutral rate rising in short

term

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Argentina economy minister forecasts May inflation below

5%

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Colombian equity market closed

(Updated at 3:35 p.m. ET/ 1935 GMT)

By Ankika Biswas and Shashwat Chauhan

June 10 (Reuters) -

Most Latin American currencies came under pressure on Monday

as the dollar firmed at the start of a week packed with global

economic data and a Federal Reserve policy meeting, while the

Mexican peso edged higher after last week's slump.

The Mexican peso was last up 0.7% against the dollar,

after hitting more than one-year lows earlier in the session.

Mexico's currency saw heavy losses last week after the

governing party's unexpected lopsided victory had prompted

investor concerns that it may use its mandate to sweep aside

some of the checks on presidential power.

In latest developments, the ruling Morena party and its

allies won a super-majority in the lower house of Congress but

fell short in the Senate. A two-thirds majority is needed in

both houses to change the constitution.

However, the country's outgoing president said he would not

pressure his successor to rush a package of constitutional

reforms he has proposed, including a major overhaul of the

judiciary which has spooked markets since the June 2 election.

Most Latam currencies traded lower against a firmer

dollar after last week's strong U.S. jobs data, with all eyes

now on the U.S. interest rate decision on Wednesday.

A slate of inflation reports throughout the week will

further set the tone for the U.S. policy outlook.

Inflation prints in Brazil and Colombia will also be

awaited this week.

"With the exception of Colombia, inflation has fallen to

each country's upper target range. Nevertheless, the

similarities end there," strategists at BCA Research said in a

note.

"Given their recessions, inflation in Chile and Peru

will converge to their central bank's target. For Brazil and

Mexico, inflation will persist around the upper target band."

Chile's peso weakened 0.2% and Peru's sol shed

0.9%, while Brazil's real lost 0.2%, touching its lowest

level since January 2023.

A Reuters poll showed Brazil's consumer price data for May

will likely show an acceleration in inflation.

Brazil's central bank chief said the neutral interest rate

is higher than most peers.

The MSCI index for Latam stocks was also

down 0.7% to its lowest level since November. Colombian equities

were shut for trading due to a public holiday.

Meanwhile, Argentina's economy minister expects May

inflation below 5%, slightly lower than estimates, and noted

that the government sees signs of recovery in several sectors.

Key Latin American stock indexes and currencies:

Latest Daily % change

MSCI Emerging Markets 1070.44 -0.25

MSCI LatAm 2218.33 -0.65

Brazil Bovespa 120916.53 0.12

Mexico IPC 53182.16 0.39

Chile IPSA 6638.47 0

Argentina MerVal 1569064.89 3.282

Colombia COLCAP 1411.99 0.1

Currencies Latest Daily % change

Brazil real 5.3546 -0.57

Mexico peso 18.2689 0.61

Chile peso 921.4 -0.26

Colombia peso 3935.72 0.01

Peru sol 3.7682 -0.83

Argentina peso 901.5000 -0.22

(interbank)

Argentina peso 1260 0.40

(parallel)