Mexico peso slips after Greece downgrade

* Peso slips off highest since May 18

* IPC stock index pares gains (Recasts, adds comment)

MEXICO CITY, June 14 (Reuters) - Mexico's peso slipped on Monday from a near one-month high after a downgrade of Greece's debt curbed investor appetite for riskier assets like emerging market currencies.

The peso MXN=MEX01 broke a five-session winning streak, losing 0.62 percent to 12.72 per U.S. dollar while the IPC stock index .MXX pared sharp gains but still traded up 0.52 percent at 32,290.

Moody's Investors Service slashed Greece's credit rating by four notches to junk status, but suggested there would not be any further downgrades in the near future. U.S. stocks cut sharp gains after the news

"This shows how sensitive investors are to the issues in Southern Europe -- the uncertainty of its impact on global growth," said Roberto Melzi, a strategist at Barclays Capital in New York.

Mexico's peso has been battered in recent months on fears Europe's debt troubles will weigh down a global economic recovery. But the Mexican currency had been paring its losses, gaining around 4 percent from a low in May.

Earlier on Monday, the peso firmed to its strongest level since May 18 after strong euro zone industrial output data for April eased concerns that the euro zone debt crisis had affected the region's industries.

The yield on the government's benchmark 10-year peso bond MX10YT=RR bid up 2 basis points to 6.93 percent.

In stock trading, the IPC hits its highest since May 13. Shares in leading retailer Wal-Mart de Mexico (WALMEXV.MX) added 2.28 percent to 29.55 pesos while copper miner Grupo Mexico (GMEXICOB.MX) gained 0.66 percent to 32.05 pesos. (Reporting by Michael O'Boyle; Editing by Dan Grebler)