* Peru's cenbank raises benchmark interest rate to 6.5% * Mexican peso up 3% on the week * Brazil, Paraguay to resume talks on Itaipu energy sale (Updates prices; adds bullets, details) By Susan Mathew and Anisha Sircar Aug 12 (Reuters) - Latin American currencies rose on Friday, and were on course to log weekly gains as easing worries about the U.S. Federal Reserve's aggressive pace of tightening supported sentiment. Brazil's real jumped 1.8%, while Mexico's peso extended gains after the country's central bank, commonly known as Banxico, raised the key interest rate to a record 8.5% overnight, as expected.
* Bank of Mexico hikes rate 75 bps to record high 8.5% * Argentina cenbank hikes rate by 950 basis points * Brazil services sector up for 2nd straight month * Colombia's Q2 economic growth forecast at 11.25% y/y (Updates prices; adds details, comment) By Susan Mathew and Anisha Sircar Aug 11 (Reuters) - Mexico's peso pared gains on Thursday after the central bank announced an interest rate hike that met expectations, while other Latin American currencies and emerging market shares firmed on optimism for milder U.S. inflation. The Bank of Mexico hiked the benchmark interest rate by 75 basis points to a record 8.5%, in line with estimates in a Reuters poll, and mirroring the U.S. Federal Reserve's most recent decision.
Mexico's central bank is expected to deliver a second consecutive 75 basis points hike, taking the benchmark interest rate to a new historic level of 8.5% after inflation surged to its highest level in nearly 22 years in July. "An even bigger rate step cannot be ruled out and would probably boost the peso," said Elisabeth Andreae, FX and EM analyst at Commerzbank. Mexico's peso was up 0.5%, staying close to six-week highs hit last session.