By Natalia Cacioli
SAO PAULO, July 25 (Reuters) - Key Latin American currencies edged higher on Wednesday, halting a three-day slide, as investors speculated the U.S. Federal Reserve may soon deploy additional monetary stimulus, which would boost the flow of dollars into emerging economies.
Gains seemed fragile, however, as economic concerns and disappointing corporate earnings weighed on global equity markets, dampening investor sentiment in general.
The Brazilian real rose 0.2 percent, trimming some initial gains as major Wall Street indexes turned negative on disappointing results from Apple Inc.
The Mexican peso gained 0.3 percent, while the Chilean peso was 0.5 percent stronger.
"Expectations that the Fed may move up its third round of stimulus to August encouraged investors," said Luciano Rostagno, chief strategist at WestLB bank in Sao Paulo.
Also supporting Latin American currencies was a report showing that a European Central Bank policymaker opened up to the idea of giving Europe's new permanent rescue fund a banking license, which would enable it to borrow unlimited central bank money and boost its capacity to fight the crisis.
The currencies of Brazil, Mexico and Chile had posted losses in the past three sessions as tensions in the euro zone rose and investors speculated Spain could need a full bailout that would further stretch the euro zone's finances.
Latin American FX prices at 1600 GMT:
Currencies daily % YTD %
Latest Brazil real 2.0384 0.24 -8.33
Mexico peso 13.6670 0.29 2.21
Argentina peso* 6.4200 0.16 -26.32
Chile peso 492.3000 0.49 5.48
Colombia peso 1,803.0000 0.01 7.51
Peru sol 2.6380 0.11 2.24
(Writing by Walter Brandimarte; Editing by Leslie Adler)