Link that refers to a menu item with dynamically generated URL

You can use the wp_get_recent_posts function in your own custom function.

Something like this should work:

function get_recent_post_link(){
    // Restrict to latest post
    $args = array( 'numberposts' => '1' );
    // Get the post
    $latest_post = wp_get_recent_posts( $args );
    foreach( $latest_post as $the_post ){
        return get_permalink($the_post["ID"]);
    }
}

You can the call the function in your anchor:

<a href="https://wordpress.stackexchange.com/questions/257142/<?php echo get_recent_post_link(); ?>">Latest</a>

Note, I have not tested this, please use as a guideline.