After suffering for months on concerns that US President Donald Trump could scrap NAFTA, the Mexican peso has since stabilized as he adopted a more constructive rhetoric.

Trump hailed progress on trade after meeting Mexican President Enrique Pena Nieto on Friday on the sidelines of the G20 summit in Hamburg, Germany. The Mexican government has said it expects a general agreement on reworking the trade deal by the end of 2017.

The peso firmed 0.7 percent, touching its strongest since late June. Also boosting the demand for the currency was a central bank decision to renew $200 million worth of foreign exchange hedging instruments.

The Brazilian real also found support in central bank intervention, after the bank indicated it could fully roll over $6.2 billion worth of currency swaps maturing next month.

Brazil's benchmark Bovespa stock index rose 0.8 percent, as shares of miner Vale SA tracked iron ore prices higher.

Shares of Alpargatas SA, the maker of Havaianas flip-flops, fell 1.6 percent after Reuters reported controlling shareholder J&F Investimentos ended talks to sell a controlling stake in the company.

Power utility Light SA jumped to the highest level in 16 years after shareholder Cia Energ?tica de Minas Gerais SA decided to fully dispose of its stake as part of a divestment plan.