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* OECD report shows all major economies slowing * Merkel says Europe may be facing 'worst hour' since WWII * Mexican, Chile pesos, Brazilian real weaken vs dollar By Jeb Blount RIO DE JANEIRO, Nov 14 Reuters) - Latin America's most-traded currencies weakened against the U.S. dollar on Monday as evidence mounted that Europe's debt crisis is causing the world's economies to slow. Brazil's real , the region's second-most traded currency, weakened 1.18 percent to 1.7635 to the dollar. The Mexican peso , Latin America's most-traded currency, weakened 0.28 percent to 13.5355. Chile's peso weakened 0.50 percent to 500.20. All of the world's major economies will slow in the coming months, the Organization for Economic Cooperation and Development, a club of the countries with the largest market economies, said on Monday.That is nearly three percentage points more than Italy paid to sell similar debt at the beginning of the year. Italy needs to sell hundreds of billions of euros of new bonds to refinance maturing debt in the coming years. "The feel-good factor we had last week with the new governments in Italy and Greece moving to tackle their debt problems is over," Thin said. Thin, though, sees a potential silver lining in the OECD report's cloud. Growth in the United States, the world's largest national economy, shows signs of outpacing other regions such as Europe, and China, which, while slowing, will likely continue growing, he said. "This could mean that the risks to emerging markets of the European slowdown could be limited," he added. Benito Berber of Nomura Securities in New York sees this week as a potentially positive one for Latin American currencies if Greece and Italy move forward with the formation of their new governments. "As long as it's a quiet week, this could be a good week for risk assets in Latin America." Latin American currencies are "risk assets" because they are less traded, or liquid, than those in U.S. dollars and their price swings or volatility are higher than developed world currencies.