By Susan Mathew June 17 (Reuters) - Latin American currencies largely rose against a softer dollar on Monday ahead of a U.S. Federal Reserve policy setting meeting this week which is expected to lay the groundwork for a rate cut later this year. Lower U.S. interest rate boost the relative attractiveness of developing world assets, usually spurring broad inflows into emerging markets. The Federal Reserve is expected to leave borrowing costs unchanged at the end of its two-day meeting on Wednesday but possibly signal a rate cut this year. "The meeting is all about providing the markets with sufficient reassurance that the next move will be a cut, most likely in July," wrote Piotr Matys, an emerging markets FX strategist at Rabobank. Investors in the region are also waiting for Brazil's central bank rate decision meeting on Wednesday. "We expect the Selic rate to stay unchanged at 6.50%, while a more dovish tone is likely to open doors for one cut later in 2019," said Vladimir Miklashevsky, a senior economist and trading desk strategist at Danske Bank. "Currently, there are fewer worries about accelerating inflation, which has climbed above the target, while staying within the boundaries." Brazil's real was up 0.12%. The currency slipped more than 1% on Friday after the country's economy minister expressed strong disappointment with what he called excessive changes to the government's pension reform bill. The minister, Paulo Guedes, had urged the government not to make too many changes to the bill which is seen as crucial in fixing the economy. Mexico's peso barely moved after posting a 2.4% rise last week when a deal to avert U.S. tariffs on Mexican goods helped the currency recover from lows hit on the tariff threats. The United States has doubled the number of asylum seekers it sends back each day to Mexico from El Paso, Texas, a Mexican immigration official said on Friday, in the first sign of action following a deal struck to avert U.S. tariffs last week. Among stocks, those listed in Sao Paulo were flat. Financial and material heavy-weights fell, while consumer stocks rose. Mining major Vale slipped 0.9%. The iron ore miner said it expects to soon restore 20 million tonnes of yearly capacity at its Brucutu mine in Brazil, which sent the steel-making ingredient's prices lower. IRB Brasil Resseguros SA recovered from last session's decline when it fell after sources said Brazil's government and BB Seguros Participações SA planned to sell their stakes in the reinsurer by July. Key Latin American stock indexes and currencies at 1344 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 1011.37 -0.37 MSCI LatAm 2747.43 -0.24 Brazil Bovespa 98019.70 -0.02 Mexico IPC - - Chile IPSA - - Colombia IGBC - - Currencies Latest Daily % change Brazil real 3.8887 0.26 Mexico peso 19.1580 -0.04 Chile peso 698.5 0.19 Colombia peso 3273.99 -0.18 Peru sol 3.346 0.00 (Reporting by Susan Mathew in Bengaluru; Editing by Susan Thomas)