* Brazil may allow more currency gains to curb inflation
* Chile's peso firms on copper, rate hike bets
* Peru sol jumps on bets Humala to lose second round vote
* Brazil real up 1.9 pct, Mexico peso 0.21 pct
By Michael O'Boyle and Luciana Lopez
MEXICO CITY/SAO PAULO, April 7 (Reuters) - Brazil's real surged on Thursday on bets Brazilian policymakers would allow more currency gains in order to offset inflation pressures, with some eyeing room for a jump further to 1.50 per dollar.
The real had its biggest jump since June 2010 as it rose to its strongest against the dollar since August 2008.
Brazil announced a minor tax increase on foreign borrowing on Wednesday to try to halt the real's appreciation, but the measure was far less drastic than many had feared. For more, see:[ID:nN06227464]
Brazil has tried a variety of measures to slow the real's gains, with limited success. More severe capital controls could push investors out of Brazil, while further currency strength could help contain the impact of rising commodity prices.
"The government appears to have decided to allow the currency to appreciate a bit more and see how beneficial for inflation expectations it could actually be," said Marcelo Salomon, chief economist for Brazil at Barclays Capital in New York.
Data showed consumer prices in Brazil rose more expected in March, pushing the annual inflation rate near the top of a government ceiling. [ID:nN07268340]
The real
Finance Minister Guido Mantega announced another press conference at 6:30 p.m. local time (2130 GMT) on Thursday, raising some concerns further measures could be introduced.
TARGETING 1.50
Miriam Tavares, currency director at brokerage AGK Corretora in Sao Paulo, said the real would likely trade between 1.55 and 1.60 per dollar in the coming session.
Analysts at RBS Securities and Barclays Capital both see the real firming to as strong as 1.50 per dollar.
Low interest rates in major developed economies like the United States and Japan will keep up the allure of Brazil's double-digit debt yields, while higher prices for commodities, like Brazil's key exports of soybeans and iron, will further back Latin American currencies, analysts said.
"You see commodity prices moving up, and you will see more flows into Brazil," Salomon added.
Still, a widening current account deficit and expectations the U.S. central bank will eventually start to withdraw liquidity could cause Brazil's real to weaken slightly over the next year, a Reuters poll showed. [ID:nN06201367]
Mexico's peso managed to stake out a 2-1/2 year intraday high, at 11.7615 per dollar, before paring back. The currency is supported by expectations an improving U.S. economy will boost demand for local exports.
Mexico sends around 80 percent of its exports to its northern neighbor. While Mexico is expected to keep interest rates on hold for at least most of this year, investors are still drawn to yields that are higher than in developed markets.
The Mexican peso
Chile's peso
Also backing bets for an aggressive interest rate hike this month, the central bank's president said on Thursday that Chile's economy will grow close to its full capacity this year. [ID:nN07109118]
Peru's sol
The first-round vote will be held on Sunday. The sol has weakened in recent weeks on worries about a Humala victory. (Additonal reporting by Silvio Cascione in Sao Paulo, Foilan Romero in Santiago, and Ursula Scollo; Editing by Dan Grebler)