EMERGING MARKETS-Mexican peso drags Latam currencies to 3-week low

* Brazil's inflation rises less than expected * Chile's economy expected stagnant in 2023 * Petrobras signs agreements with Compagas for natural gas supply * FX down 0.2%, stocks off 0.5% By Shubham Batra and Johann M Cherian Sept 6 (Reuters) - Latin American currencies hit a three-week low on Wednesday in volatile trading driven by losses in Mexican peso, while the dollar held its six-month peak weighed by China and global growth jitters. MSCI's index of Latin American currencies slid 0.2% against the dollar. The Mexican peso fell for a fifth consecutive session against the greenback, sliding 0.7%. According to a Reuters poll of economists, Mexico's inflation, due on Thursday, likely slowed in August for the seventh straight month, with the closely watched core index expected to return to 2021 levels. Chile's peso was down 0.1% after the country's central bank lowered the top end of its estimate for the economic performance in 2023, saying it now forecasts gross domestic product to show no growth in the most optimistic scenario. This comes after the central bank cut its benchmark interest rate by 75 basis points to 9.5% on Tuesday in a unanimous decision. "We expect another 75 bps cuts in the two remaining meetings of the year (October and December) for an end-of-year policy rate of 8.0%," Goldman Sachs said in a note. Peruvian sol also slid 0.4. Meanwhile, Brazil's real rose 0.1% against the dollar after inflation in South America's biggest country rose less than expected at 0.05% in August, compared with a 0.4% gain in July, private think tank Getulio Vargas Foundation said. Latin American stocks also fell 0.5%, while Brazil's Bovespa index rose 0.4%. Petrobras jumped 1.0% after the state-run oil company signed contracts for the supply of natural gas with gas company Compagas for around 6.4 billion reals ($1.28 billion). Vale edged 0.1% higher after the Brazilian miner said it has signed an agreement with Sweden-based H2 Green Steel to study the development of industrial hubs in Brazil and North America. In other company news, Chile's Codelco raised $2 billion in a bond offering in New York on Tuesday, as the world's top copper producer seeks to fund an investment drive to revive flagging output. Elsewhere in emerging markets, Poland's zolty tumbled 1.4% to a four-month low after the country's central bank cut its main interest rate by 75 basis points to 6.00%, and signaled a rate cut could come in September if inflation fell to single digits. Key Latin American stock indexes and currencies at 1435 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 981.41 -0.45 MSCI LatAm 2332.95 -0.47 Brazil Bovespa 117760.65 0.37 Mexico IPC 52933.03 0 Chile IPSA 5918.15 -0.16 Argentina MerVal 603018.93 0.817 Colombia COLCAP 1055.13 0.38 Currencies Latest Daily % change Brazil real 4.9716 0.06 Mexico peso 17.5295 -0.70 Chile peso 874 -0.10 Colombia peso 4089.25 -0.04 Peru sol 3.6993 -0.42 Argentina peso 350.0000 0.00 (interbank) Argentina peso 715 1.40 (parallel) (Reporting by Shubham Batra and Johann M Cherian in Bengaluru Editing by Marguerita Choy)