By Bruno Federowski SAO PAULO, June 28 (Reuters) - Latin American currencies jumped on Tuesday as investors scooped up bargains following a sell-off triggered by Britain's decision to leave the European Union.

The Mexican peso registered its biggest rise since Feb. 17, finishing the day at 18.837 per dollar, 1.79 percent above Monday's reference price.

But the currency remained near historical lows, with analysts forecasting the central bank could raise interest rates at this week's policy meeting to fight off price pressures.

"I don't think there is a need to hike but Banxico has put itself in a corner by focusing on the Mexican peso too much," 4Cast economist Pedro Tuesta said. "The market has basically priced in a hike and therefore could be disappointed by the lack of a hike." The Colombian peso also rebounded, finishing up 2.48 percent against the dollar, helped by higher oil prices.

The Brazilian real rose more than 2.5 percent to its strongest in almost a year, in line with the rebound in other world markets.

Brazil's central bank reiterated on Tuesday it had no plans to reduce rates, saying it aimed to keep inflation inside the government's target band this year despite market expectations it could fail to do so.

Traders also perceived hawkish overtones in comments by central bank Governor Ilan Goldfajn later on Tuesday.

"Those who believed Goldfajn could have a dovish inclination will have to reassess this conviction," Absolute Investimentos partner Renato Botto said.

Key Latin American stock indexes at 00.10 GMT: Stock indexes daily % YTD % change change Latest MSCI Emerging Markets 807.32 0.26 1.4 MSCI LatAm 2143.50 2.91 17.14 Brazil Bovespa 50006.56 1.55 15.36 Mexico IPC 44714.54 0.98 4.04 Chile IPSA 3936.03 -0.73 6.95 Chile IGPA 19464.93 -0.63 7.24 Argentina MerVal 14141.52 2.66 21.12 Colombia IGBC 9706.43 0.3 13.56 Venezuela IBC 13067.06 -1.26 -10.43 (Reporting by Bruno Federowski; Additional reporting by Priscila Jordão; Editing by Andrea Ricci and Richard Chang)