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Latam FX up 0.6%, stocks up 0.4%

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Brazil's bank lending picks up in April

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South Africa's central bank cuts rates by 25 bps

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Chile's jobless rate hits 8.8% in quarter through April

(Updates with mid-session prices)

By Pranav Kashyap and Purvi Agarwal

May 29 (Reuters) - Latin American currencies

strengthened against a collapsing dollar as investors assessed

the developments in U.S. President Donald Trump's tariff saga,

while South African stocks gained after a local interest rate

cut.

An index tracking Latin American currencies

was up 0.6%, as the dollar index fell over 1% against a

basket of major global currencies.

The dollar's fleeting strength had been spurred by a U.S.

trade court ruling that invalidated most of President Trump's

tariffs, deeming he had overstepped his executive authority with

the across-the-board import duties.

However, the U.S. Appeals Court reinstated the President's

tariffs during an appeal by the administration, bringing the

market's focus to uncertainties surrounding the U.S. trade and

fiscal outlook, now that legal hurdles were involved.

"The Court's decision may have increased uncertainty, by

forcing Trump to consider other and more legally secure ways to

impose new tariffs," said Thierry Wizman, global FX and rates

strategist at Macquarie.

"But the ruling can actually speed up the introduction of

more rationalized, sector-based tariffs, many of which may now

be announced (but not yet imposed) soon."

Meanwhile, South Africa's benchmark stock index hit

a record high, following the central bank's move to cut interest

rates by 25 basis points to 7.25%, a decision underpinned by

domestic inflation running comfortably below the midpoint of its

target range.

The rand was up 0.7%, hovering near its highest

levels since December.

In Latin America, the Mexican peso advanced 0.4%

against the dollar, ahead of its first-ever judicial elections

this Sunday.

However, injecting a note of caution, the Bank of Mexico, in

its quarterly report published Wednesday, revised down its

growth forecasts for the Mexican economy for this year and next,

citing subdued domestic activity and uncertainty tied to U.S.

trade policy.

Brazil's real strengthened 0.5%, the most among

peers. Brazilian bank lending data for April showed an

acceleration, highlighting resilience in economic activity,

despite tight borrowing costs at a near two-decade high.

Argentina's government announced a successful placement of

approximately 1.15 trillion pesos (nearly $1 billion) in a

fixed-rate Treasury bond maturing in 2030.

The offering, designed to attract international investors

with U.S. dollar subscriptions and peso-denominated payments,

was heavily oversubscribed with offers reaching 1.94 trillion

pesos, as officials look to shore up foreign reserves.

Still, Argentina's peso slipped 1.8%, while

stocks in Buenos Aires ticked 1.6% lower.

Chile's unemployment rate for the quarter through April

edged up to 8.8%, slightly higher than the previous rolling

quarter and above market estimates. Its peso appreciated

0.5%.

Brazil's Bovespa index was little changed, while

Chilean stocks were down 0.5%. Ones in Mexico

were 0.1% higher.

Separately, the Russian rouble rose strongly on

Thursday, to an over two-year high, reportedly following

Moscow's proposal for a fresh round of peace talks with Kyiv.

The International Monetary Fund announced that its staff and

Ukrainian authorities have reached a staff-level agreement on

the eighth review of Ukraine's four-year, $15.5 billion Extended

Fund Facility arrangement.

Elsewhere, Israel signed off on the latest U.S. ceasefire

proposal for Gaza before it was sent to the Palestinian Hamas

group, the White House said.

Key Latin American stocks and currencies around 1920 GMT :

Latin American market

prices from Reuters

Equities Latest Daily %

change

MSCI Emerging Markets 1172.09 0.71

MSCI LatAm 2265.12 0.44

Brazil Bovespa 138835.47 -0.04

Mexico IPC 58815.5 0.14

Chile IPSA 8204.35 -0.49

Argentina Merval 2307772.0 -1.56

1

Colombia COLCAP 1647.93 0.04

Currencies Latest Daily %

change

Brazil real 5.6599 0.51

Mexico peso 19.2995 0.44

Chile peso 935.87 0.52

Colombia peso 4121.39 0.08

Peru sol 3.622 0.49

Argentina peso (interbank) 1182 -1.82

Argentina peso (parallel) 1150 1.74