* Brazil"s consumer confidence jumps in April * Mexico"s economy likely slowed during the first quarter -poll * Peru"s sol set for best day in a year, bounces off record lows (Recasts with Fed meeting, updates prices) By Ambar Warrick and Shashank Nayar April 28 (Reuters) - Latin American stocks and currencies extended gains to a three-month high on Wednesday after dovish signals from the U.S. Federal Reserve hit Treasury yields and brightened the outlook for risk-driven assets. MSCI"s index of Latin American currencies jumped 1.1% to its highest level since late January, after the Fed held interest rates and its monthly bond-buying program steady, and gave no sign it was ready to tighten policy. Treasury yields had dropped sharply after the statement. "The Fed recognized the swift economic recovery continues to raise inflation concerns amongst market participants, but they haven’t flinched on their stance that upticks of inflation brought on by the recovery will remain transitory," said Charlie Ripley, Senior Investment Strategist for Allianz Investment Management. While concerns over increased U.S. inflation had pushed up Treasury yields and pressured emerging market assets earlier this year, constant dovish signals from the Fed had helped capital flows return to EM forex and debt. Latam stocks rose 1.5% to their highest since late January, with Brazil"s Bovespa leading gains in the region. Broader emerging market currencies were at two-month highs, while stocks hit a 1-1/2 month high. Brazil"s real rose 1.8% to its highest point since mid-February after April consumer confidence marked its biggest rise in nine months. The government also increased its emergency cash buffer in March to cover future debt obligations, as a second wave of the COVID-19 pandemic tore through the country. "The imminent passing of the budget for 2021, officially respecting the spending cap and the affirmation efforts that the tax and administrative reforms would be stepped up, supported BRL-positive sentiment," said Melanie Fischinger, an emerging markets analyst at Commerzbank. Peru"s sol was the best performer in Latam on Wednesday, surging 1.9% in what was set to be its biggest daily gain in a year. The currency was recovering from several sessions of record lows, spurred by concerns over a socialist presidency. Currencies of oil exporting countries, Mexico and Colombia gained 0.7% and 0.6% respectively, tracking higher crude prices. Still, a Reuters poll showed the Mexican economy likely grew only marginally during the first quarter of the year due to the impact of the coronavirus pandemic and energy shortages in February. Chile"s peso rose 0.8%, even as copper prices eased from 10-year highs. But analysts at Goldman Sachs joined others predicting a copper rally to record levels. Latin American stock indexes and currencies: Latest Daily % change MSCI Emerging Markets 1367.27 0.39 MSCI LatAm 2450.24 1.53 Brazil Bovespa 121144.73 1.47 Mexico IPC 48498.89 -0.64 Chile IPSA 4590.09 -3.35 Argentina MerVal 49972.06 2.063 Colombia COLCAP 1283.80 -0.72 Currencies Latest Daily % change Brazil real 5.3654 1.77 Mexico peso 19.9030 0.69 Chile peso 695.9 0.79 Colombia peso 3694.13 0.59 Peru sol 3.7687 1.86 Argentina peso 93.4300 -0.10 (interbank) (Reporting by Shashank Nayar in Bengaluru; editing by Philippa Fletcher and Grant McCool)