(New throughout, updates prices and market activity)
MEXICO CITY, Feb 12 (Reuters) - Latin American currencies firmed on Monday as markets stabilized following last week's extreme volatility and steep losses.
Appetite for risk-taking crept back into currency markets, helping higher-yielding emerging market currencies including the Colombian peso, which was up close to 2 percent after shedding more than 3 percent last week.
"Investors see opportunities in some assets including (emerging market) currencies at current prices after the massive selloff last week," said FX strategist Juan Carlos Alderete of Banorte.
Mexico's peso currency was up nearly 0.5 percent, and stocks rose more than 0.5 percent.
Investors are expecting to see lower inflation when the U.S. government releases data on Wednesday, which would bode well for emerging markets, analysts said.
"An inflation reading below the estimate would be positive for risk assets, including currencies," Alderete said.
In Chile, the central bank is expected within 11 months to raise its benchmark interest rate to 2.75 percent from 2.5 percent currently, according to a monthly poll of 47 analysts surveyed by the bank and published on Monday. The country's peso strengthened about 1 percent, and stocks inched up as well.
The markets in Brazil, Latin America's largest, were closed for Carnival celebrations, as were Argentina's.Key Latin American stock indexes and currencies at 2033 GMT:
Stock indexes daily % YTD %
Latest changechangeMSCI Emerging Markets 1154.781.04 -1.35 MSCI LatAm2971.580.654.39 Brazil Bovespa 80898.70 -0.785.89 Mexico IPC 48044.270.51 -2.65 Chile IPSA5557.070.14 -0.14 Chile IGPA 28047.820.130.24 Argentina MerVal 30143.44 -2.830.26 Colombia IGBC11685.481.022.77 Venezuela IBC0.00 0 -100.00 Currenciesdaily % YTD %
changechange
LatestBrazil real 3.29350.000.60
Mexico peso 18.61800.475.81 Chile peso 599.11.032.60
Colombia peso 2889.91.613.19Peru sol 3.2680.24 -0.95
Argentina peso19.96000.10 -6.81(interbank) Argentina peso20.18 -1.24 -4.71(parallel) (Reporting by Sheky Espejo and David Alire Garcia; Additional reporting by Julia Love; Editing by Jeffrey Benkoe and David Gregorio)
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