By Lisa Pauline Mattackal

Feb 25 (Reuters) - Latin American currencies were steady against a faltering U.S. dollar on Tuesday, as the greenback came under pressure from a drop in yields and offset concerns about escalating U.S. tariffs.

The dollar lost ground, as U.S. Treasury yields slipped as concerns about the strength of the U.S. economy have renewed some expectations for multiple U.S. rate cuts this year. FRX/

Investors are pricing in about 58 basis points of easing from the U.S. central bank, up from 40 last week as per LSEG data.

Most Latin American currencies were flat to higher on the day, with Colombia's peso COP= flat, Chile's peso CLP= rising 0.2% and Peru's sol PEN= up 0.1%.

The change in U.S. rate expectations could be a bright spot for emerging markets, already grappling with higher U.S. rates and the looming threat of tariffs from U.S. President Donald Trump.

Mexican President Claudia Sheinbaum said talks were ongoing with the U.S. government after Trump said tariffs on Mexican and Canadian imports are "on time and on schedule."

Mexico's peso MXN=D3 edged up about 0.1%.

Brazil's real BRBY led gains, rising 0.4%, after data showed the IPCA-15 consumer price index posted its biggest monthly rise in almost three years in February with a 1.23% rise, highlighting the challenge faced by the country's central bank in taming inflation.

"We now expect (Brazil) inflation to reach roughly 5.5% by late Q2 and hold steady at this level throughout H2, as last year’s currency depreciation continues to feed through and inflation expectations remain unmoored," said Andres Abadia, chief LatAm economist at Pantheon Macroeconomics.

"Still, risks to the inflation outlook remain tilted upwards, particularly given the heightened exchange rate volatility and fragile external backdrop."

A poll showed support for leftist President Luiz Inacio Lula da Silva has dipped as voters worry about rising prices.

Stocks in the region fell broadly. Argentina's Merval .MERV slumped 3.1% and Mexico's main index .MXX fell 1.1%.

Brazil's Bovespa .BVSP, however, bucked the trend, rising 0.8%, lifted by gains in Itau Unibanco ITUB4.SA and Eletrobras ELET6.SA.

MSCI's index of Latam currencies dipped 0.3%, and an index of regional stocks .MILA00000PUS edged down 0.1%.

Elsewhere, Hungary's forint EURHUF= lost 0.3% against the euro EUR=, breaking the 400 per euro level, after its central bank held rates at 6.50%, as expected. Policymakers flagged that the risks of higher inflation this year have increased.

South Africa's central bank governor said global trade tensions and a potential value-added tax hike in South Africa could derail two years of slowing inflation.

HIGHLIGHTS

** Debt crisis hits new highs in developing nations, relief deal needed, says UN

** Low savings, shallow markets stymie African leaders' push to mobilise local cash

** Ecuadorean president forecasts more than 4% economic growth this year

** Rwanda appoints new central bank governor

Key Latin American stock indexes and currencies at 1550 GMT:

(Reporting by Lisa Mattackal in Bengaluru; Editing by Alistair Bell)

((LisaPauline.Mattackal@thomsonreuters.com;))