EMERGING MARKETS-Mexican peso falls on weak data; real rattled by Senate inquiry

    * Brazilian consumer inflation jumps first time in four
    * Mexican peso drops most in over one month
    * Peru's sol stable after massive losing streak

 (Adds details on Peruvian sol, Mexican data)
    By Shashank Nayar and Ambar Warrick
    April 27 (Reuters) - Mexico's peso led losses across Latin
American currencies on Tuesday after a larger-than-expected
trade deficit hurt sentiment, while Brazil's real fell as an
inquiry into the government's handling of the COVID-19 pandemic
    The peso dropped 1% and was set for its biggest
single-day drop in a month, as an unexpectedly larger trade
deficit in March added to concerns over sluggish economic
    Still, expectations that a U.S. economic recovery will
benefit Mexico, as well as a resurgence in carry trade have
supported the peso. 
    Finance Minister Arturo Herrera also said Mexico will come
out of the COVID-19 pandemic much stronger than many of its
Latin American peers in terms of its macro and fiscal
    "Going forward we expect solid U.S. demand and a competitive
exchange rate to continue to support Mexican exports," analysts
at Goldman Sachs wrote in a note. 
    Brazil's real reversed early gains to trade 0.2%
lower, as the Senate inquiry appeared to be a major headache for
President Jair Bolsonaro ahead of next year's election.

    Brazilian stocks fell 1.1%, while broader Latam
stocks also fell. 
    "Weakness in the BRL is led by fear that the current spike
in virus infections would be sustained for longer. In
addition... Brazil has been struggling to procure vaccines for a
faster vaccination program, which is the need,” said Mauricio
Une, senior economist at Rabobank.
    Expectations of a central bank rate hike in Brazil have
somewhat supported the real, as inflation reached more than
four-year highs.
    Other Latam currencies moved in a flat-to-narrow range, as
investors held off large bets ahead of a Federal Reserve policy
decision on Wednesday, where the bank is widely expected to
maintain its dovish stance. 
    A rising second wave of coronavirus infections and an acute
shortfall of vaccinations have kept sentiment subdued towards
Latam assets. 
    The currency of the world's top copper producer, Chile
, rose 0.6% and was trading nearly 1% away from its
highest point this year, as copper prices climbed to near-decade
    Peru's sol traded flat near record lows and appeared
to have stabilized after plummeting 5.7% over the past six
    The possibility of a socialist presidency in the Andean
nation, which is also a major copper producer, had spooked
investors, denying the sol the benefit of recent gains in copper
    Key Latin American stock indexes and currencies:
                              Latest      Daily % change
 MSCI Emerging Markets         1361.18                 0.04
 MSCI LatAm                    2405.11                -1.01
 Brazil Bovespa              119268.95                 -1.1
 Mexico IPC                   48879.74                -0.09
 Chile IPSA                    4767.29                -2.01
 Argentina MerVal             48857.19                1.932
 Colombia COLCAP               1292.68                 0.47 Currencies             Latest      Daily % change
 Brazil real                    5.4602                -0.23
 Mexico peso                   20.0561                -1.03
 Chile peso                      700.4                 0.61
 Colombia peso                    3716                -0.62
 Peru sol                       3.8388                -0.03
 Argentina peso                93.3300                -0.05

 (Reporting by Ambar Warrick and Shashank Nayar in Bengaluru;
Editing by Alistair Bell and Andrea Ricci)