EMERGING MARKETS-Latam currencies steady as dollar slides; real higher after inflation data

Updates to mid-session trading

By Lisa Pauline Mattackal and Purvi Agarwal

Feb 25 (Reuters) - Latin American currencies were broadly steady against a faltering U.S. dollar on Tuesday, as the greenback came under pressure from a drop in yields and offset concerns about escalating U.S. tariffs.

The dollar <=USD> lost ground, as U.S. Treasury yields slipped after concerns around the resilience of the U.S. economy renewed some expectations for multiple U.S. rate cuts this year. FRX/

Investors are pricing in about 57 basis points of easing from the U.S. central bank, up from 40 last week as per LSEG data.

Already grappling with higher U.S. rates and looming tariff threats from U.S. President Donald Trump, the change in rate expectations could provide some relief to emerging market economies.

On the day, Mexican President Claudia Sheinbaum said talks were ongoing with the U.S. government, after Trump said tariffs on Mexican and Canadian imports are "on time and on schedule."

Mexico's peso MXN= was flat, and so was Argentina's peso ARS= and the Peruvian sol PEN=.

"This comes as a bit of a surprise given the moves Mexico and Canada have made on the border to avoid tariffs... the market has become quite desensitized to the tariff noise and probably expects this is just part of the negotiation process," said Brad Bechtel, global head of FX at Jefferies.

Brazil's real L=> led gains, rising 0.5%, after data showed the IPCA-15 consumer price index posted its biggest monthly rise in almost three years in February.

"(The data) is unlikely to prompt the monetary policy committee to deviate from its guidance for at least one more 100bp hike... inflation remains above the central bank's 3% target and fiscal concerns have not gone away," said Jason Tuvey, deputy chief EM economist at Capital Economics.

Separately, a poll showed support for President Luiz Inacio Lula da Silva has dipped as voters worry about rising prices.

The currency in oil-exporter Colombia COP= fell 0.2%, as oil prices dipped over 2%. [O/R]

Chile's peso CLP= was 0.2% higher, despite a fall in copper prices.

A large power outage struck vast swaths of Chile, including the mining-intensive north, affecting copper mines such as Escondida and state-owned Codelco. Antofagasta ANTO.L said it was operating with backup power generation.

Stocks in the region were broadly lower. Argentina's Merval .MERV slumped 2.7% and Mexico's main index .MXX fell 1.2%. Colombia's COLCAP .COLCAP was down 0.1%.

Brazil's Bovespa .BVSP, bucked the trend with a 0.6% rise, boosted by a 1% gain in Itau Unibanco ITUB4.SA and Eletrobras ELET6.SA each.

MSCI's index of Latam currencies dipped 0.2%, and an index of regional stocks .MILA00000PUS was flat.

Elsewhere, Hungary's forint EURHUF= lost 0.2% against the euro EUR=, breaking the 400 per euro level, after its central bank held rates at 6.50%, as expected.

HIGHLIGHTS

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Ecuadorean president forecasts more than 4% economic growth this year

*Nigeria's economy grows at fastest in three years in fourth quarter

Key Latin American stock indexes and currencies at 1940 GMT: