(Recasts with peso strengthening; updates table) By Bruno Federowski SAO PAULO, Feb 22 (Reuters) - Mexico's peso strengthened on Wednesday to its highest level since the election of U.S. President Donald Trump, a day after the central bank said it would offer up to $20 billion in currency hedges.
The peso strengthened 0.7 percent to trade at 19.87 per dollar, which central bank Governor Agustin Carstens said reflected confidence in the hedge.
"The measure has been very successful," Carstens said, adding the hedge helps remove volatility from the foreign exchange market.
Mexico's foreign exchange commission said the program will not use the central bank's international reserves, but instead will auction contracts similar to non-deliverable forwards that pay in pesos.
Brazil's central bank cut its benchmark interest rate by 75 basis points to 12.25 on Wednesday, as expected by most economists polled by Reuters last week.
Some investors had speculated the bank could increase the pace of loosening to a brisk 100 basis points after several months of slower-than-expected inflation.
But a report on Tuesday showed the annual inflation rate eased less than expected in mid-February, moderating those expectations.
The Brazilian real strengthened nearly 0.2 percent, while the Chilean peso traded nearly flat.
Key Latin American stock indexes and currencies at 2115 GMT: Stock indexes daily % YTD % Latest change change MSCI Emerging 952.72 0.75 9.67 Markets MSCI LatAm 2688.21 0.9 13.83 Brazil Bovespa 68589.54 -0.67 13.88 Mexico IPC 47195.68 -0.88 3.40 Chile IPSA 4375.70 0.05 5.40 Chile IGPA 21870.55 0.04 5.48 Argentina MerVal 19915.25 -0.78 17.72 Colombia IGBC 9929.40 -0.38 -1.96 Venezuela IBC 34869.48 -0.62 9.98 Currencies daily % YTD % change change Latest Brazil real 3.0630 0.18 6.19 Mexico peso 19.8750 0.70 4.37 Chile peso 641.9 -0.12 4.49 Colombia peso 2894.8 0.06 3.69 Peru sol 3.245 0.03 5.21 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli and Leslie Adler)