(Adds details, updates prices throughout) By Susan Mathew and Shreyashi Sanyal June 10 (Reuters) - Emerging market currencies were trading mixed for the day on Thursday, with Mexico's peso recovering from a fall after a central bank leadership change and the Peruvian sol falling as socialist Pedro Castillo maintained a slim lead over rival Keiko Fujimori. Markets also shrugged off U.S. inflation for May, which rose more than expected, but not enough to for the Federal Reserve to change its loose monetary policy, analysts said. The European Central Bank kept stimulus taps wide open at its meeting. "It is eye-popping but it's important to consider where we are versus a year ago," said Scott Brown, chief economist at Raymond James in Florida. "I don't think there is any reason for the Fed to panic." MSCI's index of EM currencies was flat with Brazil's real reversing early gains as attention turned to next week's central bank meeting. Analysts increasingly see a rate hike to control inflation, which would make the currency an attractive high yielder for carry trade. "Economic optimism and the hope that the Brazilian central bank would more than partially normalise the key interest rate have again significantly boosted the BRL appreciation last month," said Commerzbank's EM FX analysts. "However, we remain cautious in view of country-specific risks," they said, citing the possibility of President Jair Bolsonaro taking non-conventional decisions in the run-up to presidential elections next year. Stocks in Sao Paulo were also lower by afternoon trading. Mexico's peso erased early losses after a reshuffle of the central bank governor and finance minister on Wednesday, to rise 0.2%. Mexican Finance Minister Arturo Herrera was tapped on Wednesday by President Andres Manuel Lopez Obrador to lead the central bank, while economist Rogelio Ramirez de la O, a close ally, was appointed finance minister. "Banxico's Board shall become more dovish," strategists at Citi Research said, adding that they do not expect that many changes on the fiscal front. The moves come after the ruling party lost some of its majority in the lower house of Congress, making it harder to pass proposed reforms that could alter market-friendly policies. Peru's sol slipped 1% as investors looked for more news on the progress of presidential vote counting. Socialist Castillo maintained a slight lead, although rival conservative Fujimori contested several ballots. Chile's peso edged higher after a central bank poll showed the Chilean economy surged 15.2% in May and 14.7% in the second quarter. Key Latin American stock indexes and currencies: Stock indexes Latest Daily % change MSCI Emerging Markets 1379.77 0.51 MSCI LatAm 2674.21 0.07 Brazil Bovespa 130265.91 -0.28 Mexico IPC 51009.68 0.17 Chile IPSA 4259.12 -0.22 Argentina MerVal 68200.27 0.14 Colombia COLCAP 1255.34 0 Currencies Latest Daily % change Brazil real 5.0718 -0.04 Mexico peso 19.6931 0.19 Chile peso 720.8 -0.26 Colombia peso 3601.85 -0.41 Peru sol 3.8847 -1.26 Argentina peso (interbank) 95.0900 -0.03 Argentina peso (parallel) 154 1.30 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by Nick Macfie and Alistair Bell)
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