(Corrects milestone to "one-week high" from "two-week high" in
headline and paragraph 1)
    By Shreyashi Sanyal
    Aug 11 (Reuters) - The Mexican peso jumped to its highest
level in one week on Tuesday after data showed industrial output
rose in June in a sign of recovery following the coronavirus
lockdown, while other Latin American currencies strengthened
against a weaker dollar. 
    The peso gained 0.9% against the greenback on Mexican
industrial output rising 17.9% in June from May led by a rebound
in manufacturing and construction.  
    Investors are awaiting the Mexican central bank's policy
meeting, markets expecting an interest rate cut later this week
to the lowest level in four years.
    "The consensus is for a 50bps rate cut, as the bank
struggles to prop up the economy and keep the peso from
deflating. Banxico officials have continued to provide
contradicting signals about forthcoming bank policy, giving the
market increased uncertainty," said analysts at Orbex Global.
    Brazil's real firmed against the dollar, with minutes
from the latest central bank meeting showing Brazilian interest
rates are close to as low as they can go without destabilizing
financial markets, meaning any further reductions will likely be
gradual and spaced out over time. 
    The Chilean peso bounced from a one-month low it hit
during the previous session. Signs of improvement in copper
demand from China has helped support the currency.     
    Stocks in the region followed Wall Street's strong open,
with Chilean stocks rising the most in Latin America. 
    Brazilian lender Banco BTG Pactual SA rose 1.8%
even as its second-quarter recurring net income fell 4.1% to 987
million reais on higher operating expenses.
    More unrest hit Peru, as angry residents in Andean and
Amazon regions have attacked three mining and oil sector firms
in the last week, two of which were forced to halt operations
after deadly clashes, as a second wave of COVID-19 infections
hits the country.    
    
    Latin American stock indexes and currencies at 1400 GMT:    
      Stock indexes                  Latest       Daily %
                                                  change
 MSCI Emerging Markets                   1093.73     0.67
                                                  
 MSCI LatAm                              2022.50    -0.02
                                                  
 Brazil Bovespa                        104264.62     0.79
 Mexico IPC                             38786.48      1.3
 Chile IPSA                              4018.38     0.86
                                                  
 Argentina MerVal                           0.00        0
                                                  
 Colombia COLCAP                         1151.31     0.68 Currencies                  Latest       Daily %
                                                  change
 Brazil real                              5.4571     0.13
                                                  
 Mexico peso                             22.3774     0.31
                                                  
 Chile peso                                  796     0.83
                                                  
 Colombia peso                           3746.25     0.51
 Peru sol                                 3.5587     0.03
                                                  
 Argentina peso (interbank)              72.9900    -0.05
                                                  
 Argentina peso (parallel)                   127     4.72
                                                  
 

 (Reporting by Shreyashi Sanyal in Bengaluru; editing by Grant
McCool)