*

Peru's central bank cuts benchmark interest rate to 6%

*

Colombia inflation to fall at slower rate in coming

months:

policymaker

*

Brazil's services activity unexpectedly down in February

*

Argentina's monthly inflation below forecast

*

Latam stocks down 1.7%, FX down 0.8%

(Updated at 3:45 p.m. EDT/1945 GMT)

By Bansari Mayur Kamdar

April 12 (Reuters) - Currencies and stock indexes in

Latin America broadly fell on Friday, pressured by a rising

dollar as investors continued to reprice expectations for U.S.

monetary policy.

The MSCI index for Latin American currencies

fell 0.8% and was set to end the week 1% lower. A basket of

regional stocks fell 1.7% on the day and lost

2.2% for the week.

Both indexes were set for their worst week since mid-January

as the U.S. dollar has soared this week, denting investor

appetite for riskier emerging market assets.

The dollar index jumped 1.7% this week after

stronger than expected U.S. consumer prices data on Wednesday

and commentary from Fed officials saying there is no rush to cut

interest rates.

"This is partly just a reflection of the fact that Latin

American central banks have had a bit more space to ease and

some of this modest weakness we've seen this week is a bit of a

reversal of the incredible strength," said Rachel Ziemba,

founder at Ziemba Insights.

Leading regional losses, Mexico's peso dropped 1.3%

against the dollar, the Colombian peso fell 0.9% and

Chile's peso was down 1.2%.

"We're entering into this important period for the (Mexican)

peso with the election campaign and with the dynamics with the

central bank," Ziemba said.

Peru's sol slipped 0.4% after its central bank cut

the benchmark interest rate to 6.00% on Thursday, marking a

return to monetary easing in Peru.

Data showed inflation in Argentina slowed to 11% on a

monthly basis in March, below forecast, a day after the central

bank cut its benchmark interest rate by 10 points to 70%.

The South American nation is battling inflation that is

among the worst in the world, with rolling 12-month inflation at

287.9% in March. Argentina's peso was trading at 985 to the

dollar on the informal parallel market.

Brazil's real shed 0.6% against the greenback. Data

showed activity in Brazil's services sector fell 0.9% in

February from the previous month, missing analyst forecasts.

El Salvador priced a six-year, $1 billion note yielding 12%

to be issued next week, underwritten by Bank of America

Securities, LSEG data showed.

The broader emerging market currencies index

fell 0.4% to its lowest level since January, while stocks

shed 1.3%.

HIGHLIGHTS:

** Argentina's government (and a bot) say inflation is

easing. Shoppers aren't so sure

** El Salvador more likely to get new IMF deal than multiple

rating upgrades - Moody's

** Peru's central bank: new pension withdrawal unlikely to

fan inflation

Key Latin American stock indexes and currencies at 1945 GMT:

Latest Daily %

change

MSCI Emerging Markets 1041.29 -1.31

MSCI LatAm 2475.92 -1.69

Brazil Bovespa 125811.05 -1.24

Mexico IPC 56583.47 -0.43

Chile IPSA 6549.72 -2.63

Argentina MerVal 1243391.71 -1.264

Colombia COLCAP 1398.54 -1.18

Currencies Latest Daily %

change

Brazil real 5.1188 -0.57

Mexico peso 16.6452 -1.27

Chile peso 966.3 -1.20

Colombia peso 3854.54 -0.86

Peru sol 3.6929 -0.40

Argentina peso 866.5000 -0.06

(interbank)

Argentina peso 985 1.52

(parallel)