By Purvi Agarwal

Feb 12 (Reuters) - The dollar rose broadly against emerging market currencies on Wednesday after a strong inflation report in the U.S. as traders pulled back hopes of multiple Federal Reserve rate cuts this year, while investors also assessed developments in the Middle East.

The dollar index =USD rose to its highest in more than a week after a stronger-than-expected inflation reading in the U.S. led investors to price in fewer U.S. interest rate cuts this year.

"The increase in inflation metrics completely takes away the ability of the Fed to cut rates," said Chris Zaccarelli, chief investment officer, Northlight Asset Management.

"This will likely have a negative knee-jerk reaction to the increasing risks of higher-for-longer or even higher-from-here, so caution is warranted."

The Colombian peso COP= depreciated 0.5%, on track for its third session of declines. Lower oil prices also weighed on stocks .COLCAP in the major oil exporter.

Mexico's peso MXN= was flat. The currency has been continuously battered by tariff headlines out of the U.S., and is expected to remain under pressure until markets get more clarity on tariffs after March 1., when Trump's one-month reprieve for Mexico and Canada concludes.

Brazil's real BRL= was little changed. Its central bank signaled caution beyond an expected March rate hike and said it would take time to confirm incoming data pointed to an economic slowdown.

Chile's peso CLP= led gains with a 0.6% rise, boosted by copper prices. MSCI's index tracking Latin American currencies .MILA00000CUS was slightly higher.

Regional stocks were mixed, but MSCI's stocks gauge .MILA00000PUS fell 0.8%, on track for its worst day in nearly four weeks.

Brazil's Bovespa .BVSP lost 1.5%, weighed down by a 1.3% decline in oil company Petrobras PETR3.SA and a 5% decline in Bradesco BBDC4.SA.

Grupo Mexico GMEXICOB.MX slipped marginally after the mining group reported a drop in its net profit during the fourth quarter.

Meanwhile, investors kept an eye on developments in the Middle East, where Trump pressed Jordan's King Abdullah to take in Palestinians from Gaza who would be permanently displaced under Trump's plan for the U.S. to take over the Gaza strip.

Israel sold $5 billion of five- and 10-year bonds in an international debt offering overnight, the country's second such issue since the Gaza war started.

Dollar-denominated sovereign bonds in Jordan were broadly higher. Those in Egypt broadly slipped, while the pound EGP= slid 0.5% to a more than one-month low.

Senegal's bonds slid more than 1.5 cents after a long-awaited audit report confirmed larger-than-reported government debt, with the 2033 one down 2.4 cents to be bid at 79.68 on the dollar.

Highlights:

** How Argentina took a chainsaw to government, a year before Elon Musk's DOGE

** Transits through Panama Canal fell in January for first time in almost a year

** Namibia central bank cuts key rate, saying inflation well-contained

** Zambia hikes key rate to try to steer inflation back to target

Key Latin American stock indexes and currencies:

(Reporting by Purvi Agarwal in Bengaluru. Editing by Jane Merriman)

((Purvi.Agarwal@thomsonreuters.com;))