*

Colombia stock exchange measures may allow it to stay in

JPM

index

*

IMF approves $8.1 bln flexible credit line for Colombia,

approves $1.1 bln funding for Pakistan

*

Brazil's central government posts budget deficit in March

*

Latam stocks up 0.9%, currencies add 0.5%

(Updated at 3:45pm ET/1945 GMT)

By Bansari Mayur Kamdar

April 29 (Reuters) -

Latin American currencies tracked broader emerging market

currencies higher on Monday as the dollar weakened and stocks in

the region rose at the start of a data-heavy week.

The dollar softened 0.3% as investors eyed a busy week

with an interest rate decision by the Federal Reserve on

Wednesday and closely watched U.S. payrolls data due on Friday.

The Colombian peso rose 0.9% against the greenback,

briefly touching its highest level in two weeks, and Colombian

stocks climbed 1%.

Investors expect Colombia's central bank to cut interest

rates on Tuesday by 50 basis points at its second meeting in a

row.

"Our base case is for BanRep to continue with rate cuts at

upcoming meetings, as we expect inflation to fall over the next

three to six months," said Andres Abadia, chief Latam economist

at Pantheon Macroeconomics.

The Colombian stock exchange's president said measures taken

by the exchange and securities issuers to improve liquidity

could be enough for the country to hold onto its "emerging

market" classification and stay in a key JPMorgan index.

The International Monetary Fund on Friday approved a

flexible credit line worth $8.1 billion for Colombia, which will

not use the loan immediately but could draw it down during a

crisis.

The MSCI index for Latin American currencies

gained 0.5%, while the stocks index added 0.9%.

Mexico's peso, Peru's sol and Chile's peso

gained between 0.4% and 1%.

Brazil's real lagged peers, little changed against

the dollar.

The Brazilian central government recorded an unexpected

budget deficit in March, data showed, with increased expenses

overshadowing the rise in revenues.

Brazil's Bovespa index gained 0.5%.

Shares of

Casas Bahia

soared 32%, their biggest rally in 10 years,

after the Brazilian retailer announced an agreement to

restructure 4.1 billion reais ($801.45 million) in debt.

In Argentina, stocks jumped over 2% as the Chamber

of Deputies begin discussing on Monday two packages of liberal

reforms promoted by far-right President Javier Milei.

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1051.83 0.99

MSCI LatAm 2485.47 0.91

Brazil Bovespa 127120.36 0.47

Mexico IPC 57659.83 -0.3

Chile IPSA 6527.01 2.08

Argentina MerVal 1306712.27 2.13

Colombia COLCAP 1380.88 1.04

Currencies Latest Daily %

change

Brazil real 5.1145 0.02

Mexico peso 17.0180 0.71

Chile peso 940.9 0.96

Colombia peso 3856.71 0.92

Peru sol 3.7183 0.45

Argentina peso 876.5000 -0.17

(interbank)

Argentina peso 1025 2.93

(parallel)