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EMERGING MARKETS-Latam currencies rise, Mexican peso up before top level U.S.-Mexico meeting

By Susan Mathew

By Susan Mathew June 5 (Reuters) - Mexico's peso rose on Wednesday ahead of a meeting of top officials from Mexico and the United States to discuss migration issues, while most other Latin American currencies also firmed as rising expectations of a rate cut by the U.S. central bank dented the dollar. After declining early in the session, the peso turned around to rise 0.2% and looked set to extend Tuesday's 1% increase. On Wednesday, Mexican officials will seek to persuade the White House in talks hosted by U.S. Vice President Mike Pence that their government has done enough to stem immigration and avoid looming tariffs. "We think today's meeting with Pence and (Secretary of State Mike) Pompeo will go well, but probably not enough for a deal to stop the tariffs now," said analysts at Citigroup Research in a note. "The first round may very well go ahead, but pessimism should be checked as long as a deal is in sight," they said. The tariffs are set to take effect on June 10 at an initial 5 percent and rise as high as 25 percent later in the year. U.S President Donald Trump on Tuesday said he would push ahead with tariffs on Mexican imports despite resistance from his own party. He warned Republicans in Congress not to block his efforts. The tariffs are aimed at pressuring Mexico to take stronger action to stop the inflow of illegal migrants into the United States via the Mexican border. Among other regional currencies, the dollar's weakness helped Colombia's peso touch a three-week high, while Chile's currency edged up. The greenback struggled near a seven-week low on after comments by the U.S. Federal Reserve Chair Jerome Powell and other Fed officials led to rising hopes of an interest rate cut by the central bank in response to trade conflict-related risks. Brazil's real gave up early gains when it hit its highest in almost eight weeks, to trade flat. Stocks in Sao Paulo were also little changed. Petrochemaical company Braskem was the top gainer, up 4%, as it recovered from a 17% slide last session. Airline Gol Linhas Aereas Inteligentes followed with its 2.4% rise after reporting strong May traffic numbers. But, a decline in bank stocks limited gains. Economy Minister Paulo Guedes on Tuesday said local banks are chalking up "excessive" profits and urged injection of competition to end what he called the cartels that dominate many of its major sectors. Key Latin American stock indexes and currencies at 1348 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1007.81 0.24 MSCI LatAm 2734.21 0.31 Brazil Bovespa 97278.64 -0.1 Mexico IPC - - Chile IPSA 5003.22 -0.04 Argentina MerVal - - Colombia IGBC 12115.64 -0.35 Currencies Latest Daily % change Brazil real 3.8544 0.05 Mexico peso 19.5379 0.11 Chile peso 693 -0.01 Colombia peso 3286.9 0.10 Peru sol 3.348 0.00 Argentina peso 44.6700 0.11 (interbank) (Reporting by Susan Mathew in Bengaluru;)