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Rate decisions in Brazil, Mexico and Peru this week

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Brazil's Rede D'Or jumps after Q1 profit beat

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Stocks up 0.4%, FX adds 0.1%

By Shashwat Chauhan

May 7 (Reuters) - A gauge of Latin American currencies

rose on Tuesday, with Brazil's real leading gains ahead of a

spate of central bank rate decisions in the region this week,

while global sentiment remained upbeat on hopes of U.S. Federal

Reserve rate cuts.

By 10:14 a.m. ET (1414 GMT), MSCI's index for Latin American

currencies had added 0.1%, while a gauge for

stocks gained 0.4%.

Brazil's real rose 0.2% against the dollar with the

central bank's Copom rate-setting committee widely expected to

cut interest rates by at least 25 basis points on Wednesday.

Mexico's peso edged 0.1% higher against the dollar

with Banxico seen holding rates at 11% on Thursday.

"The credibility challenge facing the central bank stems

from the significant divergence between its inflation forecast

and consensus," Societe Generale strategists wrote in a note.

"Banxico maintains a high real rate buffer vs historical

numbers and vs the Fed's policy rate."

Chile's peso dipped 0.4% against the dollar after

rising for the last three sessions, while Colombia's peso

appreciated 0.2% against the dollar.

The dollar index, which measures the greenback

against a basket of other major currencies, remained under

pressure after a softer-than-anticipated U.S. jobs report and a

dovish tilt by the Fed rekindled policy easing hopes.

Brazilian stocks added 0.5%, briefly touching a four

week high, as health care and consumer discretionary stocks

rallied.

Rede D'Or jumped almost 8% after the Brazilian

health group recorded a 165.2% jump in first quarter net profit,

beating market expectations.

Stocks in Mexico eased 0.3%.

Inflation readings in Mexico, Colombia and Chile, and a rate

decision in Peru are among other events in the region this week.

Latin American currencies have lost steam as major central

banks in the region kicked off policy easing cycles this year as

inflation eased, while the U.S. Fed has so far stood its ground.

HIGHLIGHTS

** Inflation-hit Argentina puts new 10,000 peso bill into

circulation

** Chile central bank says economy recovering but some

sectors lag

** Chile copper exports hit $4.19 billion in April

Key Latin American stock indexes and currencies at 1414 GMT:

Stock indexes Latest Daily % change

MSCI Emerging Markets 1068.43 0.16

MSCI LatAm 2505.91 0.35

Brazil Bovespa 129154.87 0.54

Mexico IPC 57155.75 -0.22

Chile IPSA 6540.92 0.68

Argentina MerVal 0.00 0

Colombia COLCAP 1383.00 0.22

Currencies Latest Daily % change

Brazil real 5.0664 0.15

Mexico peso 16.8516 0.05

Chile peso 933.5 -0.40

Colombia peso 3885.26 0.19

Peru sol 3.7286 -0.35

Argentina peso 880.5000 0.00

(interbank)

Argentina peso 1025 1.46

(parallel)