Latin American currencies edged lower on Friday as a decline in US consumer confidence weighed on the Mexican peso while doubts about future interest rate hikes in Brazil hit the real. The Brazilian real dropped 0.14 percent to 1.9840 per dollar as investors continued to digest the minutes of the central bank's latest monetary policy meeting.
In the document, released on Thursday, policymakers sounded increasingly concerned about inflation but, at the same time, said they would be cautious with future policy steps due to "lingering uncertainties of external and internal origin." In Mexico, the peso was up 0.16 percent at 12.4150 per dollar, weighed by data showing US consumer sentiment tumbled in early March to its lowest in over a year.
The Mexican peso has had an impressive rally in recent sessions and the economic data from its northern neighbour, which is also the main consumer of Mexican exports, tempered investors' optimism about the currency. The Colombian peso fell 0.43 percent to 1,806.01 per dollar after a policymaker said the central bank has room to further lower its benchmark interest rate, reducing the allure of domestic assets.
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