* Mexican peso pressured by coronavirus worries * Chilean peso hits over one-year lows * Mexican c.bank seen hiking rates in upcoming meeting (Adds bullets, details, updates prices throughout) By Susan Mathew and Shreyashi Sanyal Sept 29 (Reuters) - Mexico"s peso fell to its lowest level in over three months on Wednesday as the country"s financial stability council warned the coronavirus pandemic still posed risks, while most other Latin American currencies slipped as the dollar strengthened. MSCI"s index of Latam currencies slipped 0.4% to its lowest in more than one month. Mexico"s peso dropped 1.4% to lead declines among Latam peers, a day ahead of a central bank policy meeting. The economic and financial environment in Mexico continues to be influenced by the evolution of the pandemic, the Financial Stability Council said. Mexico"s confirmed cases of the disease stood at over 3.5 million as of Tuesday while the death toll rose to 276,376. The council also pointed to risks from a potential downgrade of the credit rating of state oil company Pemex. Latam"s most indebted company, Pemex has been a weight on Mexico"s sovereign credit rating, pressuring the country"s financial assets. On Thursday, the central bank is seen hiking the benchmark interest rate by 25 basis points to 4.75% as inflation accelerated faster than expected during the first half of September to 5.87%, above the target rate of 3%. Credit Suisse analysts expect the vote to be split, with two board members voting in favor of no change in the overnight rate. They are watching for inflation forecasts. "We think that the bank will increase its inflation projections by 10bps-20bps for the third quarter of 2021, from 5.6%, and by a more meaningful amount (up to 40bps) for the final quarter of the year..." In Chile, the peso fell 1.1% to hit over one-year lows hit on Tuesday. Chile"s lower congressional chamber on Tuesday approved a bill that would allow citizens to make a fourth withdrawal from their pension funds, and sent it to the Senate for a vote, despite opposition from the government. Chilean dollar bonds maturing in 2025 and 2026 hit their lowest since the second quarter of 2020. Brazil"s real extended losses to a sixth straight session, while in Argentina, economic activity rose 11.7% in July versus the same month a year earlier, official data showed on Tuesday, comfortably ahead of analyst forecasts. Sao Paulo"s Bovespa index recovered 1% after a 3% tumble on Tuesday. Material stocks led gains, with iron ore miner Vale being the biggest boost as prices of the steel-making ingredient jumped 2%. Among other regions in emerging markets, Tunisian government bonds, made their best gains in a year after President Kais Saied appointed Najla Bouden Romdhane, a geologist with little political experience, as the country"s first woman prime minister. Key Latin American stock indexes and currencies at 1832 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1250.02 -0.86 MSCI LatAm 2230.32 0.25 Brazil Bovespa 111255.29 1.03 Mexico IPC 51191.88 0.52 Chile IPSA 4338.21 0.34 Argentina MerVal 76634.21 1.089 Colombia COLCAP 1351.99 0.11 Currencies Latest Daily % change Brazil real 5.4324 -0.11 Mexico peso 20.5710 -1.24 Chile peso 810.9 -1.07 Colombia peso 3833.53 -0.05 Peru sol 4.1216 -0.15 Argentina peso (interbank) 98.7100 -0.04 Argentina peso (parallel) 184 1.63 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru; Editing by William Maclean and Gareth Jones) Our Standards: The Thomson Reuters Trust Principles.