Most Latin American currencies rose on Friday as the dollar weakened after a U.S. inflation reading supported expectations of interest rate cuts from the Federal Reserve, while Mexico's peso edged higher in the lead-up to presidential elections.

The dollar weakened after data showed U.S. inflation rose in line with market expectations in April.

The futures market continued to price in one U.S. rate cut of 25 basis points this year following the data. Peru's sol and Chilean peso rose 0.5% and 0.1%, respectively, while Colombia's peso held steady at 3865 per dollar.

Focus would remain on Mexico, with the peso appreciating 0.3% to 16.97 per dollar after falling for the last three sessions, though on track for a weekly decline.

In Mexico, the presidential candidate for ruling party MORENA, Claudia Sheinbaum, is almost universally expected to win on Sunday, but some traders say prospects of a ruling party congressional supermajority could be pressuring the peso.

A two-thirds majority would allow them to push through constitutional reforms pitched by President Andres Manuel Lopez Obrador, including energy sector reforms that are unpopular with markets.

"A scenario where MORENA wins the presidency but does not gain outright majority in Congress is good for the peso as it reduces the chances of radical reforms," TD Securities strategists noted.

"Historically, MXN has weakened in the days leading up to the presidential election and strengthened vs EM peers once the results are known and uncertainty is resolved."

Mexico's IPC index gained 0.4%, while other stock markets in the region were also mostly lower.

The Brazilian real fell almost 1% after a local holiday on Thursday, trading near its weakest level in six weeks against the dollar.

Keeping in mind Friday's moves, most Latin American currencies were on track for monthly advances, with copper producer Chile's currency set to outperform as prices of the red metal rallied in May amid demand hopes from top consumer China.

HIGHLIGHTS

** Brazil is not planning to change inflation target, Haddad says

** Codelco and SQM ink pact set to reshape Chile's lithium sector ** Peru to log April growth as recession exit underway, minister says

(Reporting by Sruthi Shankar and Shashwat Chauhan in Bengaluru; Editing by Richard Chang and Marguerita Choy)