(Corrects to show over 7 pct peso slide was this month, not last month)

MEXICO CITY, May 31 (Reuters) - Mexico's central bank will take into account the exchange rate and the U.S. Federal Reserve's upcoming rates decision when it meets on June 30 to set monetary policy, Central Bank Governor Agustin Carstens said on Tuesday.

Carstens said expectations about the Fed's June rate meeting are hitting Mexico's peso, which slid by more than 7 percent this month, its worst monthly drop in four years.

(Reporting by Michael O'Boyle; Editing by Leslie Adler)