By Bruno Federowski SAO PAULO, Jan 30 (Reuters) - Latin American currencies strengthened on Monday on investors' optimism about meetings between Mexican and U.S. officials on U.S. President Donald Trump's plans to restrict ties between the neighboring countries.
Mexican Foreign Minister Luis Videgaray said the country could conduct further bilateral meetings with the United States in the coming days, after President Enrique Peña Nieto canceled a planned encounter last week.
The Mexican peso strengthened as much as 1.1 percent to a one-month peak. The currency had weakened sharply after Peña Nieto called off the trip, reacting to comments by Trump.
Trump has pledged to build a wall along the Mexican border and has demanded that the Mexican government pay for its costs. He has also moved to renegotiate trade deals and slap high tariffs on U.S. companies that have moved jobs south of the border.
The Brazilian real strengthened around 1 percent, tracking the rally in emerging market currencies.
Trading was volatile as investors sought to influence the January Ptax rate, a benchmark calculated by the central bank on the last trading day of every month.
Still, Brazil's benchmark Bovespa stock index fell nearly 2 percent as traders booked profits from a recent rally that took it to a five-year high.
Blue-chip shares, such as miner Vale SA and lender Itaú Unibanco Holding SA, subtracted the most points from the index.
Key Latin American stock indexes and currencies at 1510 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 910.20 -0.62 6.22 MSCI LatAm 2533.75 -0.56 8.86 Brazil Bovespa 64762.56 -1.93 7.53 Mexico IPC 47061.94 -0.76 3.11 Chile IPSA 4238.69 -0.87 2.10 Chile IGPA 21163.18 -0.75 2.07 Argentina MerVal 18980.39 -1.22 12.19 Colombia IGBC 10220.99 -0.52 0.92 Venezuela IBC 28025.27 0.18 -11.61 Currencies daily % YTD % change change Latest Brazil real 3.1222 0.89 4.07 Mexico peso 20.7550 0.75 -0.05 Chile peso 648.6 0.24 3.41 Colombia peso 2937.82 -0.31 2.17 Peru sol 3.288 0.06 3.83 Argentina peso (interbank) 15.9500 -0.31 -0.47 Argentina peso (parallel) 16.78 0.12 0.24 (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)