* Data shows U.S. CPI growth slowed in May * Peru carries out $5.5 bln bond buyback, swap * Chile's peso helped by higher copper prices * Latam FX up 0.6%, stocks up 0.1% (Updates at 2040 GMT) By Amruta Khandekar and Bansari Mayur Kamdar June 13 (Reuters) - Most Latin American currencies rose on Tuesday after data showing a slowdown in U.S. consumer prices growth last month weighed on the dollar, while firm copper prices boosted the Chilean peso after the previous day's sharp declines. MSCI's Latin American currencies index was up 0.6% at 2040 GMT and at its highest level in nearly a decade. U.S. consumer prices barely rose in May and the annual increase in inflation was the smallest in more than two years, supporting the view the Federal Reserve would keep interest rates unchanged on Wednesday. "Today's CPI number was a relief for the market, as the data met expectations, confirmed the dis-inflationary trend and re-affirmed current market pricing of a Fed pause tomorrow," said Alexandra Wilson-Elizondo, Deputy CIO of Multi Asset Solutions, Goldman Sachs Asset Management. Chile's peso gained 0.4% against the dollar, after suffering its biggest one-day percentage decline since mid-March in the previous session, sparked by the country's program to boost its international reserves. Helping the currency of the world's biggest copper exporter was a rise in prices of the red metal after top consumer China cut borrowing costs for the first time in 10 months to aid economic growth. The currency of Peru, another leading copper producer eased 0.5%. Peru closed $5.48 billion buyback and swap of sovereign and global bonds, the largest debt operation in the country's history, the government said. Mexico's peso climbed 0.4% as the oil producer's currency was boosted by a 3% rally in crude prices after top importer China's rate cut. The Colombian peso, however, slipped 0.2%, bucking the broader trend. Colombia's government raised its fiscal deficit projection for 2023 to 4.3% of gross domestic product, up from a previous estimate of 3.8% but below the figure recorded last year, a government document showed. The Brazilian real was flat in choppy trade, a day after the country's central bank chief, Roberto Campos Neto, indicated that an improvement in market conditions is paving the way for a shift in monetary policy. Juan Manuel Herrera, senior strategist at Scotiabank believes comments from Campos point to chances of rate cuts in Brazil soon. "The market is now fully positioned for the start of rate cuts in August, seeing around 30bps in reductions by then, and also close to two full percentage points by year-end," Herrera said in a note. Brazilian President Luiz Inacio Lula da Silva said his government will launch a 'big' infrastructure program on July 2. The MSCI's index for regional stocks inched 0.1% up, underperfoming its emerging market peers. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1013.25 1.01 MSCI LatAm 2429.22 0.09 Brazil Bovespa 116742.71 -0.51 Mexico IPC 54580.70 0.56 Chile IPSA 5712.24 0.34 Argentina MerVal 381896.14 0.059 Colombia COLCAP 1185.36 0.12 Currencies Latest Daily % change Brazil real 4.8632 -0.04 Mexico peso 17.2181 0.30 Chile peso 803 0.40 Colombia peso 4174.5 -0.04 Peru sol 3.6432 -0.53 Argentina peso (interbank) 247.1000 -0.12 Argentina peso (parallel) 484 0.00 (Reporting by Amruta Khandekar and Bansari Mayur Kamdar in Bengaluru; Editing by Nick Zieminski and Krishna Chandra Eluri)
