* FX, stocks falls to lowest level in over 7 weeks * Mexican economy grows 0.4% in July from June * Chile's rate expected to rise to 11.25% in Oct -cenbank poll By Bansari Mayur Kamdar Sept 26 (Reuters) - Latin American currencies fell to their lowest level in more than seven weeks on Monday, as traders rushed to the safe-haven U.S. dollar, while stocks in the resource-heavy region slid on weak commodity prices and jitters about an economic slowdown. As the greenback stayed close to new two-decade highs, MSCI's index of Latam currencies fell 1.4%, with the Brazilian real down 1.4% against a robust greenback.
* Chile cenbank revises up inflation forecast * Mexico auto production up 31.36% in August (Updates prices) By Anisha Sircar and Amruta Khandekar Sept 7 (Reuters) - Major Latin American currencies rose on Wednesday as a dollar rally on aggressive rate hike expectations fizzled out, with the Chilean peso getting an additional boost from a bigger-than-expected rate increase overnight. The Andean country's central bank lifted its benchmark interest rate to 10.75% from 9.75%, while raising its inflation estimate to 11.4% from 10.8%, reinforcing bets on more hikes to combat rising prices. "Chile is not unique in a large 100 bps rate hike – the market expects double-digit terminal rates in all major Latam economies," said Natalia Gurushina, EM economist at VanEck.
* Lula widens lead over Bolsonaro ahead of Brazil election * Brazil cenbank not focused on monetary easing now - governor * Chile central bank to likely lift rates to 10.50% (Updates prices) By Anisha Sircar and Amruta Khandekar Sept 6 (Reuters) - Latin American stocks slumped nearly 3%, while major currencies lost ground against a firming dollar on Tuesday amid a risk-off sentiment due to rising fears of rate hikes and a global slowdown, with Chilean peso down ahead of central bank decision. Brazil's benchmark Bovespa stock index fell 2.2% and the currency real slipped 1.6% against the dollar after a senior policymaker said Brazil's central bank will need to be cautious about handling the end of its current tightening cycle and may still raise interest rates this month, underscoring that inflation is only beginning to subside.