EMERGING MARKETS-Latam FX, stocks broadly steady as markets await progress on US trade deals

By Ragini Mathur and Purvi Agarwal

June 27 (Reuters) - Latin American currencies were mixed on Friday, while stocks dipped as investors digested a U.S. inflation report and monitored trade developments with the U.S.

The dollar index =USD slipped 0.1%, trading around levels last seen in February 2022, though it pared much of its earlier declines.

Investors expected a dovish tilt to the U.S. Federal Reserve's monetary policy stance amid reports of President Donald Trump toying with the idea of replacing the Fed chair early, and after consumer spending surprisingly fell in May.

A trade agreement on Thursday between the United States and China on how to expedite rare earth shipments to the United States was also seen as a positive sign, as the president hinted at more upcoming deals.

MSCI's index for Latin American currencies .MILA00000CUS was up 0.1%, set for its fourth straight weekly gain, while the stocks gauge .MILA00000PUS was down 0.1%, but set for its best week since late April.

Investors have had numerous catalysts to take on riskier assets this week, including a truce between Iran and Israel, chances of a dovish Fed and some easing tariff pressures.

"Investors are starting to recognize that Latin America is somewhat of a safe-haven region amidst trade and geopolitical uncertainty," said Alejo Czerwonko, CIO of emerging markets Americas at UBS Global Wealth Management.

"Mexico received zero additional tariffs on April 2nd... meaning Latin America remains far from the eye of the trade storm."

Mexico's peso MXN= advanced 0.1%, a day after Banxico delivered a 50 basis-point interest rate cut, as expected.

Brazil's real BRL= was little changed. Data showed Brazil's jobless rate dropped to 6.2% in the three months through May, landing below expectations.

The labor market continued to provide signs of strength despite stiflingly high interest rates, amid signs that the central bank would keep borrowing costs steady for an extended period.

Chile's peso CLP= depreciated 0.4%, after three sessions of gains as copper prices retreated from three-month highs. MET/L

The Colombian peso COP= fell 0.4% ahead of the country's monetary policy decision where the domestic central bank is expected to hold interest rates steady.

Ratings agencies S&P and Moody's downgraded Colombia's debt rating by one notch on Thursday, with both citing weaker fiscal performance.

Heavyweight Brazilian stocks .BVSP slipped 0.1%, while Mexico's bourse .MXX was little changed. Colombia's stock index .COLCAP declined the most, down 0.5%.

Elsewhere in EM, the South African rand ZAR= was up 0.1%. Traders kept an eye on a potentially disruptive dispute between President Cyril Ramaphosa and his main coalition partner.

Key Latin American stock indexes and currencies: