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Mexican president-elect names cabinet members

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Brazil central bank holds interest rate steady

(Updated at 03:25 p.m. ET/ 1925 GMT)

By Shristi Achar A

June 20 (Reuters) -

A gauge of Latin American currencies rose on Thursday, led

by the Mexican peso as President-elect Claudia Sheinbaum named

the first members of her incoming cabinet, while Brazilian

stocks outperformed in the region.

The MSCI index for Latin America currencies

gained 0.2%, with Mexico's peso up 0.4%

after Sheinbaum named six members of her

incoming cabinet

, including political heavyweight Marcelo Ebrard as economy

minister.

Helping the currency further, domestic

retail sales

rose 0.5% in April, compared with expectations of a 0.3%

fall, as per LSEG data.

"The evidence that merits having faith in the country

and its currency regardless of the political anxiety came in the

form of retail sales," said Juan Perez, director of trading at

Monex USA.

"Overall, Mexico is not falling through the cracks, and

speculation over major reforms to play a negative role in the

country's progress is a bit overplayed ... Ebrard is primarily

respected for re-negotiating NAFTA successfully."

Mexican stocks remained under pressure, down

0.3%.

The Peruvian sol traded 0.4% higher, tracking

higher copper prices.

Brazil's real gave up early gains to inch nearly 0.3%

lower, extending losses for a fifth consecutive session.

The Brazilian central bank's rate-setting committee, known

as Copom, held the Selic benchmark interest rate at 10.50% on

Wednesday, raised its inflation projections and introduced an

alternative scenario with steady rates next year.

"Looking forward, Copom's updated inflation forecasts put

our more hawkish monetary policy call of a Selic rate stable at

10.50% until end-2025 in an even more comfortable position

(consensus at 9.50%)," Citi economist Leonardo Porto noted.

The committee's united front was a sharp contrast with May's

split decision, when directors tapped by the current government

dissented from slowing the pace of rate cuts, rattling markets

with questions about the monetary policy outlook.

Brazil's main Bovespa stock index, however, rose

0.4% to touch a one-week high, with state-owned oil company

Petrobras up 1.7% as crude prices climbed.

Markets in Argentina and Chile were closed for public

holidays.

Key Latin American stock indexes and currencies:

Latest Daily %

change

MSCI Emerging Markets 1094.33 -0.09

MSCI LatAm 2177.76 0.27

Brazil Bovespa 120729.03 0.39

Mexico IPC 53160.87 -0.3

Chile IPSA - -

Argentina MerVal - -

Colombia COLCAP 1375.54 -0.36

Currencies Latest Daily %

change

Brazil real 5.4551 -0.27

Mexico peso 18.3320 0.41

Chile peso - -

Colombia peso 4165.37 -0.09

Peru sol 3.792 0.41

Argentina peso (interbank) - -