* Brazilian consumer inflation jumps first time in four years * Mexican peso drops most in over one month * Peru"s sol stable after massive losing streak (Adds details on Peruvian sol, Mexican data) By Shashank Nayar and Ambar Warrick April 27 (Reuters) - Mexico"s peso led losses across Latin American currencies on Tuesday after a larger-than-expected trade deficit hurt sentiment, while Brazil"s real fell as an inquiry into the government"s handling of the COVID-19 pandemic began. The peso dropped 1% and was set for its biggest single-day drop in a month, as an unexpectedly larger trade deficit in March added to concerns over sluggish economic growth. Still, expectations that a U.S. economic recovery will benefit Mexico, as well as a resurgence in carry trade have supported the peso. Finance Minister Arturo Herrera also said Mexico will come out of the COVID-19 pandemic much stronger than many of its Latin American peers in terms of its macro and fiscal conditions. "Going forward we expect solid U.S. demand and a competitive exchange rate to continue to support Mexican exports," analysts at Goldman Sachs wrote in a note. Brazil"s real reversed early gains to trade 0.2% lower, as the Senate inquiry appeared to be a major headache for President Jair Bolsonaro ahead of next year"s election. Brazilian stocks fell 1.1%, while broader Latam stocks also fell. "Weakness in the BRL is led by fear that the current spike in virus infections would be sustained for longer. In addition... Brazil has been struggling to procure vaccines for a faster vaccination program, which is the need,” said Mauricio Une, senior economist at Rabobank. Expectations of a central bank rate hike in Brazil have somewhat supported the real, as inflation reached more than four-year highs. Other Latam currencies moved in a flat-to-narrow range, as investors held off large bets ahead of a Federal Reserve policy decision on Wednesday, where the bank is widely expected to maintain its dovish stance. A rising second wave of coronavirus infections and an acute shortfall of vaccinations have kept sentiment subdued towards Latam assets. The currency of the world"s top copper producer, Chile , rose 0.6% and was trading nearly 1% away from its highest point this year, as copper prices climbed to near-decade highs. Peru"s sol traded flat near record lows and appeared to have stabilized after plummeting 5.7% over the past six sessions. The possibility of a socialist presidency in the Andean nation, which is also a major copper producer, had spooked investors, denying the sol the benefit of recent gains in copper prices. Key Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1361.18 0.04 MSCI LatAm 2405.11 -1.01 Brazil Bovespa 119268.95 -1.1 Mexico IPC 48879.74 -0.09 Chile IPSA 4767.29 -2.01 Argentina MerVal 48857.19 1.932 Colombia COLCAP 1292.68 0.47 Currencies Latest Daily % change Brazil real 5.4602 -0.23 Mexico peso 20.0561 -1.03 Chile peso 700.4 0.61 Colombia peso 3716 -0.62 Peru sol 3.8388 -0.03 Argentina peso 93.3300 -0.05 (interbank) (Reporting by Ambar Warrick and Shashank Nayar in Bengaluru; Editing by Alistair Bell and Andrea Ricci)