(Updated at 1458 GMT)
* Peru's central bank expected to leave interest rates
unchanged
* Brazil's retail sales unexpectedly rise to record high in
May
* Latam stocks up 0.4%, FX off 0.1%
* Kenyan president sacks cabinet, bowing to pressure from
protests

By Johann M  Cherian
       July 11 (Reuters) - Currencies across most Latin
American economies see-sawed not far away from the unchanged
mark on Thursday, with investors cautious ahead of Banxico's
monetary policy minutes and an interest rate decision in Peru.
    MSCI's index tracking regional currencies
was hovering near the flat mark against a weakening dollar,
despite data showing that headline U.S. consumer prices
unexpectedly fell in June.
    However, the dollar's slip saw the Japanese yen
jump nearly 3%, its biggest daily surge since late 2022, raising
questions about official buying of the Asian currency. 
    Back in resources-rich Latin America, Brazil's real
slipped 0.1%, with traders assessing retail sales data that
showed an unexpected rise to record highs, a day after data
signaled moderating price pressures for consumers.
    Markets also assessed the implications of a tax overhaul
that the country's lower house approved, which aims to boost
productivity by streamlining a tax system critics blame for
burdening businesses with excessive costs.
    "It is a good thing because in the past ... it was a web of
taxes and it was so complicated that it discouraged a lot of
economic activity," said Eduardo Ordonez Bueso, an emerging
markets debt portfolio manager at BankInvest.
    Separately, the country's Senate Committee postponed voting
on a constitutional amendment proposal granting the central bank
greater financial autonomy from the executive.    
    Concerns around Brazil's fiscal standing along with central
bank independence have been among top reasons for the real
trading near two-year lows following a recent plunge in value.
    The Mexican peso edged up 0.1%, with investors
stepping to the sidelines in the run-up to the release of
minutes from Banxico's most recent policy meeting at which it
left interest rates unchanged.    
    Chile's peso and Peru's sol ticked up 0.3% and
0.8% respectively, with the currencies of both copper exporting
countries hovering near one-month highs. 
    Focus was on an interest rate decision by the Peruvian
central bank later in the day, where economists polled by
Reuters see borrowing costs being held at 5.75%.
    MSCI's index tracking regional equity indexes
 climbed 0.4%, with Brazil's Bovespa
adding 0.5%, helped by industrial-related stocks.
    Bourses in Mexico, Chile and Argentina
 rose between 0.4% and 1%.    
    Elsewhere, the yield on Kenyan dollar bonds
slipped over 14 basis points and the shilling weakened
nearly 1% against the euro. President William Ruto fired his
entire cabinet apart from the foreign minister, bowing to
pressure from nationwide protests that have created the biggest
crisis of his two-year presidency.
    
    Key Latin American stock indexes and currencies:

    
 Latin American market                       
 prices from Reuters                  
                                      
   Stock indexes            Latest    Daily %
                                      change
 MSCI Emerging Markets       1126.50     1.38
                                      
 MSCI LatAm                  2309.93     0.36
                                      
 Brazil Bovespa            127931.88     0.56
                                      
 Mexico IPC                 54449.87     0.31
                                      
 Chile IPSA                  6501.63     0.53
                                      
 Argentina MerVal         1708173.89    1.075
                                      
 Colombia COLCAP             1367.45     0.11
                                      
                                             
       Currencies           Latest    Daily %
                                      change
 Brazil real                  5.4237    -0.21
                                      
 Mexico peso                 17.8150     0.00
                                      
 Chile peso                    908.2     0.78
                                      
 Colombia peso               3964.31     0.02
 Peru sol                      3.769     0.03
                                      
 Argentina peso             919.0000     0.00
 (interbank)                          
                                      
 Argentina peso                 1435     1.05
 (parallel)                           
                                      
 
 (Reporting by Johann M Cherian in Bengaluru; Editing by Mark
Potter)