Latin American currencies weakened on Friday as investors pocketed part of recent gains spurred by expectations that US policymakers would keep their stimulus measures running for longer. The Brazilian real came off a four-month high while the Mexican peso weakened after trading on Thursday at its strongest level in three weeks, in a move traders called a "technical adjustment."
"The real has gained a lot over the past few days - it even crossed the 2.15-per-dollar level. It gets to a point where people need a breather," said a trader in Sao Paulo. The Brazilian real slid 0.8 percent, with traders also citing possible dollar outflows from the country.
The Mexican peso dropped 0.7 percent, also pressured by the outlook for lower domestic rates following data that showed the country's unemployment rate rose in September. Mexico's central bank is expected to cut its benchmark rate by a quarter percentage point next Friday in a bid to counter a slowdown in Latin America's No 2 economy, a Reuters poll showed on Friday.
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