UPDATE 1-Peru acts to tame inflation, eyes stronger currency

(Recasts first paragraph, adds comment from president)

LIMA, March 7 (Reuters) - Peru acted to reduce inflationary pressures on Friday, and President Alan Garcia said it would be "stupid" to halt the rally in the country's currency, rejecting views the Andean economy could be overheating.

Peru's currency, the Sol <PEN=PE> PDSB has appreciated 4.9 percent so far this year to about 2.83 per U.S. dollar.

Garcia, speaking to reporters, appeared to signal he would let the Sol strengthen despite pleas by exporters for the government to stop the appreciation trend.

"It would be an act of demagoguery or stupidity to try to weaken the Sol artificially," Garcia said. He said the weaker dollar is part of a global trend. A stronger Sol would reduce inflationary pressure.

Peru also cut tariffs on food imports and reduced taxes on fuel on Friday, the latest in a series of measures to curb inflation during a period of rapid economic growth and high prices for global commodities.

In a decree in the government gazette, the finance ministry reduced tariffs or slashed them to zero for a long list of food products, including meats, fish, milk derivatives and vegetables.

The measure was similar to a decree in October that cut tariffs on 70 percent of imports to zero.

It also reduced a sales tax on diesel, gasoline, and kerosene.