*

Peru rate decision awaited

*

Mexican inflation maintains downtrend

*

Colombia inflation data on tap

*

Stocks down 0.3%, FX loses 0.1%

By Shashwat Chauhan

March 7 (Reuters) - Most Latin American currencies fell

against the dollar on Thursday, with Peru's sol leading declines

ahead of a likely local rate cut, while Mexico's peso weakened

after cooling inflation data strengthened the case for policy

easing.

The Mexican peso fell 0.2% after official data showed

headline inflation eased slightly more than expected in

February.

Consumer prices in Latin America's second-largest economy

rose 0.09% in February against expectations of a 0.11% increase.

"The increase, however, was the smallest for a February

since 2021, highlighting that the underlying picture is still

improving consistently, easing the pressures on Banxico," said

Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.

"All in all, inflation continues to fall in Mexico, and we

expect a trend of gradual easing this year."

Members of the Bank of Mexico's governing board last month

recognised Mexico's progress bringing down inflation but called

for caution.

Peru's sol dipped 0.5% against the greenback ahead of

a central bank rate decision. It is widely expected to cut rates

by at least 25 basis points.

Colombia's peso weakened marginally to 3,921.78 per

dollar ahead of the release of February consumer prices data,

with year-on-year inflation expected to ease to 7.6% from last

month's reading of 8.35%.

On the bright side, iron ore exporter Brazil's real

advanced 0.2% amid rising iron ore prices.

Chile's peso appreciated 0.3% amid strength in copper

prices and on track to snap a three-day losing streak.

At 10:00 a.m. ET (1500 GMT), MSCI's index for Latin American

currencies was down 0.1% after rising for the

last four sessions.

A gauge of EM stocks dipped 0.3% as

heavyweight Sao Paulo shares lost 0.6%.

Stocks in Argentina fell 0.4%, while Mexican shares

advanced 0.1%.

Among headlining stocks in the region, Brazilian agriculture

firm SLC Agricola ( SLCJF ) lost 1.2% after reporting a

quarterly loss.

CSN Mineracao, the mining subsidiary of Brazilian

steelmaker and mining group CSN, jumped 5% after CSN reported a

more than fourfold jump in fourth quarter profit.

HIGHLIGHTS

** Egypt finance minister says total expected funding after

IMF deal is $20 bln

** Chile copper exports reach $3.47 billion in February

Key Latin American stock indexes and currencies at 1500 GMT:

Stock indexes Latest Daily % change

MSCI Emerging Markets 1030.68 0.27

MSCI LatAm 2522.33 -0.32

Brazil Bovespa 128195.80 -0.54

Mexico IPC 55354.57 0.13

Chile IPSA 6351.96 0.06

Argentina MerVal 995832.16 -0.381

Colombia COLCAP 1308.80 0.13

Currencies Latest Daily % change

Brazil real 4.9366 0.15

Mexico peso 16.9090 -0.19

Chile peso 982.4 0.19

Colombia peso 3921.98 -0.06

Peru sol 3.7357 -0.39

Argentina peso 846.0000 0.00

(interbank)

Argentina peso 960 3.13

(parallel)