* Mexican peso jumps 1% after sharp losses earlier this week * Banxico cuts 2024 GDP forecast * Bovespa on track for record high close * IMF approves new credit line for Chile * Latam stocks down 0.5%, FX down 0.6% (Updated at 1935 GMT/3:35 pm ET) By Shashwat Chauhan and Lisa Pauline Mattackal Aug 28 (Reuters) – Most currencies of resources-rich Latin American countries slipped on Wednesday as the dollar perked up following its recent string of declines, while slipping prices of commodities like crude oil and copper further exacerbated losses. The dollar index, which measures the greenback against a basket of major global peers, gained 0.5% after hitting its lowest level so far this year last week. MSCI’s index tracking Latin American currencies against the greenback lost 0.7%. However, the Mexican peso rose 0.6% after falling more than 3% in the last two sessions, though investors continued to eye the progress of controversial judicial reforms. The peso pared some earlier gains after Mexico’s ruling coalition fell just one senator short of a supermajority in the Senate after two opposition senators flipped. Debate on the reforms is expected to begin as Congress convenes on Sunday. Additionally, the Bank of Mexico trimmed its forecast for economic growth this year and next, while slightly increasing its fourth-quarter core inflation forecast. “There’s more concern about the internal political situation, so I wouldn’t chase Mexico right now,” said Geoffrey Dennis, independent emerging markets researcher. Declines in prices of oil and metals also weighed on the currencies of resource-rich Latin American countries. Colombia’s peso lost 1.5%, while the currencies of top copper producers Peru and Chile lost 0.1% and 0.8%. Latin American currencies gained last week as the dollar sagged on dovish comments by U.S. Federal Reserve Chair Jerome Powell, with the focus now on the size of an interest rate cut. Policy easing in the U.S. is likely to ease conditions for emerging market currencies and central banks. “(Fed rate cuts) will take a little pressure off central banks in emerging markets, there are certainly a number that would like to be cutting rates a little more quickly,” Dennis said, citing Brazil as an example. Brazil’s central bank chief Roberto Campos Neto said that the country’s disinflation process has slowed while inflation expectations have further deviated from the official 3% target recently. Data on Wednesday showed the economy created 188,021 formal jobs in July, slightly less than forecast. Brazil’s real slipped nearly 1%, extending losses to a third straight session, also hurt by slipping iron ore prices. MSCI’s gauge of Latin American stocks lost 0.5%. Brazil’s Bovespa stock index reversed early losses, rising 0.4% and was on course to close at a record high as banks and oil companies led gains. Mexican stocks were flat, while Colombian stocks rose 0.2%. HIGHLIGHTS ** IMF approves new credit line for Chile worth $13.8 bln ** Argentina official says lithium, copper to drive metal exports to $10 bln by 2027 ** Venezuela’s Machado says peaceful protests, external pressure could still oust Maduro Key Latin American stock indexes and currencies: MSCI Emerging Markets 1096.83 -0.27 MSCI LatAm 2265.29 -0.52 Brazil Bovespa 137336.56 0.41 Mexico IPC 52496.15 0.04 Chile IPSA 6379.75 0 Argentina Merval 1619604.6 0.215 5 Colombia COLCAP 1343.84 0.2 Brazil real 5.5618 -0.97 Mexico peso 19.6402 0.56 Chile peso 913.29 -0.76 Colombia peso 4095.5 -1.46 Peru sol 3.7247 -0.09 Argentina peso (interbank) 948 0.1054852 32 Argentina peso (parallel) 1315 1.9011406 84 (Reporting by Shashwat Chauhan and Lisa Mattackal in Bengaluru Editing by Nick Zieminski and Marguerita Choy)