EMERGING MARKETS-Latam FX gains slightly, stimulus eyed

* Investors wait for stronger signs on euro zone plans
* Latest EU, German comments fail to ease Latam concerns
* Brazil real little changed despite faster growth

By Rachel Uranga
MEXICO CITY, Aug 17 (Reuters) - Latin American currencies
edged up on Friday as investors waited for clearer signs of how
Europe will deal with its sovereign debt crisis.
"The market is stagnant and trading volumes are very low.
The world is waiting for September to see if Germany will
approve the ECB's stimulus measures," said João Medeiros, a
director at Pioneer brokerage in São Paulo.
German Chancellor Angela Merkel on Thursday said a vow by
European Central Bank chief Mario Draghi to do everything
necessary to defend the euro zone is "completely in line" with
the approach of European leaders.
Merkel's remarks sparked a bounce in European equities, but
with no clear plans in place, they failed to inject greater
confidence in Latin American markets.
Mexico's peso strengthened 0.32 percent to 13.1250 against
the dollar, finishing the week down about 0.3 percent. Brazil's
real gained 0.19 percent to 2.0145, helped by a
central bank report showing signs of growth in the country's
lackluster economy. The currency ended the week near flat, stuck
in a narrow range.
In Brazil, a central bank report on Friday showed that the
economy in June grew at its fastest pace in 15 months.
The bank's IBC-Br economic activity index rose a
seasonally adjusted 0.75 percent from May, in line with the
median forecast of 18 economists surveyed by Reuters.
Investors, however, remained reluctant to buy the real on
concerns the central bank is ready to intervene if the real
slips below 2 to the dollar.
"Investors are starting to feel like in Brazil the currency
is overdue for a correction, especially because it does feel
like the growth downgrade expectations are bottoming out," said
Marjorie Hernandez, a Latin American strategist at HSBC in New
York. "But really what is driving Brazil more than anything is
intervention risk."
In Mexico, data released on Thursday showed Latin America's
second-largest economy lost momentum in the second quarter,
though Mexico has largely avoided the more extreme slowdown seen
in Brazil, buoying investors confidence in the country's
outlook.
Foreign investment in Mexican debt hit record highs this
month, with investors pouring $866 billion into peso debt of
three-year maturities or more, according to Aug. 8 data from
Mexico's central bank.
"The story of strong flows into the Mexican bond market
continues, and I wouldn't say it's the strongest argument for
Mexican appreciation, but in the short term that's what has been
giving it the most support," said HSBC's Hernandez said.
The Chilean peso dipped 0.04 percent in a fifth day
of losses. On Thursday the country's central bank kept its base
interest rate steady at 5 percent, on concerns that
energy and food prices could grow in coming months. Lower
interest rates could make the country's bonds more attractive
for foreign investors.

Latin American FX prices from Reuters at 1913 GMT:

Currencies daily % year-to-
change ate %
Latest change
Brazil real 2.0145 0.19 -7.25

Mexico peso 13.1250 0.32 6.43

Argentina peso* 6.3000 0.48 -24.92

Chile peso 483.0000 -0.04 7.52

Peru sol 2.6120 0.00 3.25

* Argentine peso's rate between
brokerages