* Brazil interest rates to hit 7.00% this year -c.bank survey * Rising copper prices support currencies in Peru, Chile * Miners lead gains across Latam stock indexes (Adds comments, bullets; updates prices throughout) By Susan Mathew and Shreyashi Sanyal July 26 (Reuters) - A weakening dollar helped an index of emerging markets currencies pare losses on Monday, with Brazil"s real leading gains among Latin American units on the prospect of rising interest rates there. Stocks in the region also rose, as peers elsewhere fell on worries over tighter government regulations in China. MSCI"s index of EM currencies fell up to 0.26% on the risk-off mood, but as the dollar weakened ahead of the U.S. Federal Reserve"s policy decision on Wednesday, currencies found footing, with South Africa"s rand moving away from March lows, while Russia"s rouble erased all of its losses. Brazil"s real rose 0.7% in late-afternoon trading. A July survey showed consumer confidence in Brazil rose to a nine-month high, a fourth consecutive increase. Meanwhile, a central bank survey showed Brazilian interest rates are expected to hit 7.00% this year as inflation rises. The benchmark Selic rate is currently at 4.25%. "July"s mid-monthly CPI stronger report make us now see a the Copom hiking until 7.00% by year-end," said Mauricio Une, senior strategist at Rabobank. The news helped investors look past extended protests to impeach President Jair Bolsonaro who faces reelection next year. Increasing political uncertainty has depressed the currency about 3% from the 2021 highs hit last month. "Although the government is already taking measures to improve its popularity/relationship with Congress, it would be important to monitor the impact of these demonstrations on the next polls," strategists at Citi said. Mexico"s peso rose 0.1% as oil prices improved, but rising coronavirus cases capped gains. The total infections approached 3 million, with hospital occupancies in Mexico City and its suburbs increasing by a third. Investors worry about renewed global economic fallout from a new wave of the pandemic. The United States will not lift any existing travel restrictions "at this point" due to concerns over the highly transmissible COVID-19 Delta variant and the rising number of U.S. coronavirus cases, a White House official told Reuters. Rising copper prices buoyed exporter Peru"s sol and Chile"s peso, with focus shifting toward Chilean general elections in November. Miners were among the biggest gainers across Latam bourses on Monday as copper and iron ore prices rose. Mexico"s IPC index extended gains to a fifth straight session. Key Latin American stock indexes and currencies at 1850 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1281.00 -2.31 MSCI LatAm 2556.47 0.82 Brazil Bovespa 126034.10 0.78 Mexico IPC 51012.14 1.48 Chile IPSA 4170.40 -0.41 Argentina MerVal 65611.36 1.188 Colombia COLCAP 1256.52 0.18 Currencies Latest Daily % change Brazil real 5.1736 0.69 Mexico peso 20.0299 0.06 Chile peso 760.8 0.00 Colombia peso 3909.5 -0.63 Peru sol 3.908 0.44 Argentina peso (interbank) 96.5300 -0.09 Argentina peso (parallel) 181 2.21 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru Editing by Paul Simao and Richard Chang) Our Standards: The Thomson Reuters Trust Principles.