(Updates as of 1455 GMT)

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Colombia may need more spending cuts, committee warns

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Argentina rolls out aviation reforms

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Candidates to be next CEO of Vale recommended, report says

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Stocks up 1%, FX up 0.7%

By Johann M Cherian

July 10 (Reuters) - Most currencies across Latin America

hovered near a one-month high on Wednesday, with Chile's peso

strengthening over 1%, while investors assessed the implications

on monetary policy out of Brazil following an inflation report.

Brazil's real ticked up 0.4% to a near one-month high

after data showed consumer prices in the region's largest

economy rose less than expected in June, stoking expectations

that the central bank might not opt for a rate hike at its next

meeting.

"The fundamentals in Brazil are still quite strong. There

are inflation issues, but it has been within a manageable range

and the export of commodities has largely been supporting the

currency," said Rachel Ziemba, founder of Ziemba Insights.

MSCI's index tracking Latin American currencies

rose 0.7% to levels seen more than a month ago.

The index bounced from losses it had notched for the past

three months, when political uncertainty and worries around

local fiscal stability dampened the mood.

Market participants were also focused on comments from U.S.

Federal Reserve Chair Jerome Powell for any clues on interest

rate cuts, which could set the tone for most central banks in

emerging markets.

Mexico's peso climbed 0.4% to hit more than a

one-month high as traders reacted to comments by Deputy Governor

Galia Borja, who said it is prudent for Banxico to avoid "hasty

decisions" concerning monetary policy, a day after a

hotter-than-expected inflation report.

Colombia's currency strengthened 0.9% in low volumes

to levels seen nearly a month ago, a day after a hotter than

expected inflation report. The peso was set to mark its

ninth-straight session of gains - its longest winning streak

since September 2023.

Still, concerns remain about the oil exporter's fiscal

conditions. An independent committee said on Tuesday that the

country might need additional adjustments to its finances to

comply with its fiscal rule in 2024 and 2025 to stabilize its

debt, despite recent announcements on spending cuts.

Copper exporter Chile's peso firmed 1.2% to nearly a

one-month high as prices of the red metal ticked higher. A local

central bank poll showed analysts expect the regulator to lower

its benchmark interest rate by 25 basis points to 5.5% at its

upcoming monetary policy meeting.

Fellow copper producer Peru's sol appreciated 0.5%,

to notch a three-week high.

MSCI's index tracking Latin American bourses

climbed 1%, with Mexico's main stock index up 0.7%.

Brazil's Bovespa gained 0.1%, limited by Vale's

drop of 1.2%, with investors assessing 15 candidates

to be the mining company's next chief executive, put forward by

a consulting firm, according to a newspaper report.

Argentina's MerVal index added 1.7%. The local

government published a sweeping decree aimed at opening up the

country's aviation sector.

Key Latin American stock indexes and currencies:

Latin American market

prices from Reuters

Stock indexes Latest Daily %

change

MSCI Emerging Markets 1111.11 -0.05

MSCI LatAm 2294.22 1.04

Brazil Bovespa 127228.61 0.09

Mexico IPC 53727.60 0.74

Chile IPSA 6461.19 -0.14

Argentina MerVal 1672359.05 1.773

Colombia COLCAP 1367.67 -0.4

Currencies Latest Daily %

change

Brazil real 5.3961 0.32

Mexico peso 17.8423 0.42

Chile peso 918.5 1.19

Colombia peso 3976.63 0.85

Peru sol 3.7817 -0.27

Argentina peso 918.5000 -0.11

(interbank)

Argentina peso 1425 1.05

(parallel)