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Mexican peso renews slide, plunges 8% post election

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Brazil's economic activity flat in April

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Peru holds interest rate at 5.75%, in surprise move

(Updated at 3:33 p.m. ET/1933 GMT)

By Shubham Batra and Shashwat Chauhan

June 14 (Reuters) - Most Latin American currencies were

set for weekly declines on Friday, with the Mexican peso amongst

the worst hit on political worries, while a firm dollar and weak

commodity prices this week only added to losses in the region.

Currencies across the region traded lower, driven by

Mexico's peso that fell 0.5% against the dollar as

President-elect Claudia Sheinbaum on Thursday said that judges

in the country should be elected, echoing her agreement with a

controversial judicial reform proposed by outgoing President

Andres Manuel Lopez Obrador.

The peso has so far slumped around 8% since a resounding

election win early this month for the country's ruling party, on

track for its fourth straight weekly loss.

Slipping copper prices weighed on the currency of the

world's biggest copper producer, with Chile's peso

shedding 1.8%, touching an over one-month lows.

Peru's sol edged 0.1% against the dollar after Peru's

central bank held the benchmark interest rate at 5.75%, bucking

analysts' expectations of a 25-basis-point rate cut.

Peru's economy grew 4% in April and possibly in May as well,

the South American country's economy minister stated, putting

the country on track to recover from a recession amid a boost in

public and private spending.

Brazil's real slipped 0.3%, while Colombia's peso

edged 0.1% higher after falling more than 3% in the last

session.

On the data front, economic activity in Brazil started the

second quarter in stagnation, a central bank index showed,

frustrating market expectations.

"Activity in key sectors remains under strain, necessitating

further policy normalisation, but the rebound in inflation

expectations and strength of the labour market-which we believe

will be short-lived-suggest the COPOM will likely move to the

sidelines soon, at least temporarily," said Andres Abadia, chief

Latam economist at Pantheon Macroeconomics.

Most South American currencies were set for weekly losses as

prices of commodities such as iron ore and copper, some of the

region's top exports came under pressure, while a firm dollar on

the back of the Federal Reserve's decision earlier this week to

keep interest rates steady only compounded losses.

Amongst equities, MSCI's index for Latin American stocks

rose 0.4%, with Brazil's main stock index

and Mexico last up around 0.1% each.

The chief executive of Brazilian state-run oil company

Petrobras announced her new management team, with the

appointment of three directors, the firm said in a filing.

Shares of the company were last down around 2%.

Key Latin American stock indexes and currencies:

Latest Daily % change

MSCI Emerging Markets 1076.04 0.05

MSCI LatAm 2164.17 0.42

Brazil Bovespa 119683.36 0.1

Mexico IPC 52369.28 0.18

Chile IPSA 6503.52 0.26

Argentina MerVal 1579327.81 -1.612

Colombia COLCAP 1379.68 -0.46

Currencies Latest Daily % change

Brazil real 5.3779 -0.21

Mexico peso 18.4470 -0.50

Chile peso 931.6 -1.58

Colombia peso 4138 0.11

Peru sol 3.78 -0.29

Argentina peso 903.0000 -0.06

(interbank)

Argentina peso 1260 -1.19

(parallel)