EMERGING MARKETS-Latam currencies subdued as US inflation data eyed; Argentina bonds, stocks slip

* Argentina launches $65 bln bond swap to push back 2024 debt * Brazil Feb monthly inflation forecast at 1-yr high * Brazil's Petrobras on track to extend losses * Latam stocks down 0.4%; FX flat (Updated at 4pm ET/2000 GMT) By Ankika Biswas and Lisa Pauline Mattackal March 11 (Reuters) - Latin American currencies were largely muted against the dollar on Monday as investors awaited U.S. consumer inflation data for clues on the Federal Reserve's rate path, while Argentina's international dollar bonds slipped after the country launched a $65 billion bond swap. The MSCI index for Latam currencies was flat after hitting a near two-month high on Friday, with the dollar gaining some ground, as mixed data kept prospects of a June Fed rate cut alive. All eyes are on U.S. CPI data on Tuesday ahead of the central bank's March monetary policy decision next week. Emerging markets and other risky assets have been hit in 2024 as investors pull back expectations for the size and timeline for reduced borrowing costs. "We are probably witnessing a lull in currency markets before a major spurt," said Arthur Budaghyan, chief emerging markets strategist at BCA Research. Budaghyan expects the U.S. dollar to continue rallying, which he said will lead to more volatility and depreciation in emerging market currencies. Meanwhile, Argentina's government will launch a huge voluntary debt swap of peso and some dollar-linked instruments set to mature in 2024, a bid to push back repayments amid a major economic crisis hammering the South American country. Prices of the country's dollar-denominated government bonds slipped, with the 2038 note down about 2 cents. The Merval stock index dropped 4%. Investors will also monitor a slew of other data this week including Brazil's inflation, Argentina's CPI and a likely interest rate decision and Mexico's industrial output. A Reuters poll showed Brazil's monthly inflation rate likely accelerated to a one-year high in February. The real was little changed against the greenback. "More recently, price concerns have begun to re-emerge, especially after January IPCA (inflation) surprised the market to the upside," said Bank of America analysts in a note. Top copper producers Chile's peso fell 0.6% as prices of the red metal fell ahead of loan data from top consumer China. Among others, the Colombian peso lost 0.3% and Mexico's peso was flat, tracking weakness in crude oil prices. Meanwhile, the MSCI index tracking Latam stocks fell 0.4% to early January lows. Petrobras preferred shares fell 1.2% after plunging more than 10% on Friday as the government pushed the state-run company to reinvest cash set aside for dividends, after its board spiked an extra dividend. Losses in Petrobras, coupled with a near 3% drop in miner Vale, kept Brazil's benchmark stock index at around the three-month low hit on Friday. Vale will retain Eduardo Bartolomeo as CEO through 2024, Reuters reported Stocks in Chile jumped over 1%. Key Latin American stock indexes and currencies at 2000 GMT: Latest Daily % change MSCI Emerging Markets 1038.84 0.17 MSCI LatAm 2481.15 -0.37 Brazil Bovespa 126239.21 -0.65 Mexico IPC 55134.31 0.36 Chile IPSA 6416.46 1.24 Argentina MerVal 958962.45 -4.327 Colombia COLCAP 1298.29 -0.05 Currencies Latest Daily % change Brazil real 4.9781 0.00 Mexico peso 16.7996 0.06 Chile peso 966.4 -0.61 Colombia peso 3911.32 -0.29 Peru sol 3.6762 0.01 Argentina peso 848.0000 -0.12 (interbank) Argentina peso 985 1.02 (parallel) (Reporting by Ankika Biswas and Lisa Mattackal in Bengaluru Editing by Andrew Cawthorne and Matthew Lewis)