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Brazil consumer prices up in mid-March, annual inflation

slows

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Peru economy likely grew 2-3% in February - minister

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FX flat, stocks up 0.3%

By Ankika Biswas

March 26 (Reuters) - Latin American currencies were

mixed against a frail dollar on Tuesday, while Nigeria's

sovereign international dollar bonds rose following a 200

basis-point rate hike and the Hungarian forint extended gains

after an expected 75-bps rate cut.

The MSCI index for Latam currencies was

largely unchanged and the stocks gauge firmed

0.3%, with the dollar index inching 0.1% lower.

Any clues on the Federal Reserve's path of policy easing is

at the top of investors' radar, with a key inflation test on

deck. U.S. core personal consumption expenditure (PCE) price

index, due on Friday, is the central bank's preferred inflation

gauge.

Meanwhile, Nigeria raised its rate to 24.75%, its second

straight hike in an attempt to tame soaring inflation, boosting

sovereign international dollar bonds.

The 2029 note saw the biggest rise, up 1.4

cents to 97.9 cents on the dollar, its highest price in almost

two years, according to Tradeweb data.

"Governor Cardoso's desire to bring inflation crisis to a

close and also strengthen the naira will lead to more

tightening. We have penciled in further 100-bps hikes in May and

July each before the hiking cycle is brought to a close," David

Omojomolo, an Africa-focused economist with Capital Economics

wrote.

Hungary cut its rate to 8.25%, slowing the pace of easing

after its currency fell to a one-year low driven in part by an

escalating standoff between the bank and the government. The

forint was last up 0.3% against the euro.

"The main goal of this exercise is to keep the risk premium

high enough for investors in order to remain interested in long

HUF positions to maintain market stability and to reduce the

vulnerability of the forint," said ING Economist Peter Virovacz.

Back in Latam, data showed Brazil's consumer prices rose

slightly more than expected in their mid-March reading but the

12-month one still slowed to its lowest level since the middle

of last year. The real was down 0.2% against the dollar.

Its central bank said discussions on more modest interest

rate cuts in future emerged within the rate-setting committee,

citing heightened uncertainty domestic and international risks.

Top copper producers Chile's peso firmed 0.1%,

while Peru's sol fell 0.3%.

Peru's Economy Minister Jose Arista highlighted economy

likely grew between 2%-3% in February compared to the year-ago

period, a positive sign as it aims to climb out of a recession.

Among others, Colombia's peso was up 0.5%, while

Mexican peso was largely flat.

Key Latin American stock indexes and currencies GMT:

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1039.42 0.32

MSCI LatAm 2512.65 0.28

Brazil Bovespa 126753.15 -0.14

Mexico IPC 56501.31 -0.09

Chile IPSA 6531.42 0.57

Argentina MerVal 0.00 0

Colombia COLCAP 1324.19 -0.4

Currencies Latest Daily %

change

Brazil real 4.9852 -0.24

Mexico peso 16.6745 -0.01

Chile peso 979.8 0.08

Colombia peso 3875.99 0.48

Peru sol 3.7046 -0.25

Argentina peso (interbank) 856.5000 0.00

Argentina peso (parallel) 1000 2.00