By Ragini Mathur and Avinash P

June 17 (Reuters) - Most Latin American stocks rose on Wednesday, rebounding from the previous session's losses, while regional currencies were mixed as investors awaited the U.S. Federal Reserve's rate decision and assessed policy signals from domestic central banks.

Markets were also monitoring an interim U.S.-Iran peace agreement after U.S. President Donald Trump said the deal reached earlier this week was not final and warned he could resume bombing if he was dissatisfied with its terms. The comments added to uncertainty for investors already struggling with limited public details on the agreement.

The Fed is due to announce its rate decision later in the day and is widely expected to leave borrowing costs unchanged at the first meeting chaired by Kevin Warsh. The dollar, which edged higher ahead of the decision, could see volatility as markets adjust to a new style of policymaking and communication.

"The dollar can hold up if the Fed avoids sounding dovish, but the risk-reward has shifted somewhat against USD because falling energy prices reduce the need for further tightening," said Francesco Pesole, FX strategist at ING.

The MSCI index for Latin American currencies .MILA00000CUS edged 0.4% higher, while its stocks counterpart .MILA00000PUS gained 1.7%.

Regional policy decisions were also in focus. Chile's central bank held its benchmark interest rate at 4.5% on Tuesday for a fourth consecutive meeting, in line with expectations, as inflation slowed slightly within the bank's target range.

Chile's central bank on Wednesday lowered its 2026 economic growth forecast to between 1.0% and 1.75%, from the 1.5%-2.5% range projected in March, citing weaker-than-expected first-quarter activity.

Chile's .SPIPSA stock index was little changed, while the peso CLP= rose 0.5%, on track for a seventh straight session of gains- its longest winning streak since February 2025.

Brazil's central bank is next, with its policy decision due later on Wednesday. It is expected to deliver a third straight 25-basis-point rate cut as policymakers contend with persistent inflation pressures while gradually lowering borrowing costs from near two-decade highs.

Brazil's Bovespa index .BVSP rose 1%, while the real BRL= gained 0.6%.

Argentina's stocks .MERV advanced 0.8%. On Tuesday, the World Bank Group said it had approved a guarantee-backed financing package to help mobilize up to $2 billion in commercial loans for Argentina, aiming to lower financing costs and strengthen public debt management.

Separately, an Inter-American Development Bank report showed China was the fastest-growing buyer of Latin American and Caribbean goods in the first quarter of 2026, though the U.S. remained the region's top market.

Latin American countries have been seeking to diversify export destinations as Trump has challenged established trade ties with the region and threatened higher tariffs.

Key Latin American stock indexes and currencies at 1438 GMT:

Stock indexes	Latest	Daily % change
MSCI Emerging Markets .MSCIEF	1783.31	0.45
MSCI LatAm .MILA00000PUS	3054.9	1.66
Brazil Bovespa .BVSP	171351.43	1
Mexico IPC .MXX	68840.6	0.52
Chile IPSA .SPIPSA	10918.92	0.15
Argentina MerVal .MERV	3279509.82	0.76
Colombia COLCAP .COLCAP	2384.17	0.55
Currencies	Latest	Daily % change
Brazil real BRL=	5.0599	0.57
Mexico peso MXN=	17.1922	-0.05
Chile peso CLP=	881.19	0.49
Colombia peso COP=	3431.35	-0.23
Peru sol PEN=	3.3787	0.76
Argentina peso (interbank) ARS=RASL	1,436.0	0.00
Argentina peso (parallel) ARSB=	1,460.0	-0.68