(Recasts, adds table) By Bruno Federowski SAO PAULO/MEXICO CITY, Feb 23 (Reuters) - Mexico's peso strengthened to its highest level in more than three months on Thursday after U.S. Treasury Secretary Steven Mnuchin said that any policies enacted by U.S. President Donald Trump would have a limited impact this year. In an interview with Fox Business Network, Mnuchin said he did not see any changes to the North American Free Trade Agreement (NAFTA) in the short-term and said the Trump administration has concerns about certain aspects of a border adjustment tax. The peso strengthened more than 1.5 percent to 19.61 per dollar before paring gains. In a Reuters interview with Trump later on Thursday, the U.S. president said he supported some form of an adjustment tax, without offering details. In Brazil, the real strengthened 0.45 percent, a day after central bank policymakers voted to cut the benchmark Selic rate by 75 basis points for the second straight time to 12.25 percent. In a statement, the bank said the future pace of loosening will hinge on the evolution of economic activity and inflation. Traders said U.S. data on Thursday showing a slight rise in weekly jobless claims reinforced expectations the Federal Reserve will increase interest rates at a gradual pace throughout the year. The Fed failed on Wednesday to provide a clear signal of a rate hike in March in the minutes from its latest policy meeting. A gradual pace of U.S. rate tightening would be good news for emerging market assets, which tend to lure investors seeking higher yields. Key Latin American stock indexes at 2200 GMT: Stock indexes Latest Daily pct YTD pct change change MSCI Emerging 952.12 0.12 10.42 Markets MSCI LatAm 2.668.48 -0.42 14.01 Brazil Bovespa 67.461.39 -1.64 12.01 Mexico IPC 47.206.36 0.02 3.43 Chile IPSA 4.359.13 -0.38 5.00 Chile IGPA 21.797.22 -0.34 5.13 Argentina MerVal 19.538.09 -1.89 15.49 Colombia IGBC 10.015.94 0.87 -1.11 Venezuela IBC 34.933.43 0.18 10.18 (Reporting by Bruno Federowski; Editing by Cynthia Osterman)
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