BRASILIA: Most Latin American currencies climbed on Friday, with the Brazilian real touching a three-week high versus the dollar after weaker-than-expected US jobs data raised expectations of US interest rate cuts starting as early as September.

The real jumped 0.9% to 5.06 per dollar, its strongest level since April 11. Other currencies in the region also firmed, with a broader gauge set for its second weekly gains.

The dollar weakened, as traders priced in two US interest rate cuts of 25 basis points this year after data showed US job growth slowed more than expected in April and annual wage gains cooled.

Emerging market currencies have come under pressure this year as several countries including Brazil, Chile and Mexico kickstarted rate-cutting cycles early to spur their economies even as the Fed kept rates elevated due to sticky US inflation and resilience in the world’s largest economy.

On the day, Brazil’s industrial production rose 0.9% in March, marginally missing the 1% growth economists polled by Reuters were expecting.

Andres Abadia, chief latam economist at Pantheon Macroeconomics called it a solid report.

“Survey data have been improving in recent quarters ... rising consumer spending, helped by lower interest rates and tame inflation, will continue to drive the modest industrial recovery this year,” Abadia added.

Brazil’s Copom bank is set to meet next week, with economists split over the size of a likely rate cut.

A weaker greenback also sparked a rebound in copper prices, further supporting gains in currencies of producers of the red metal in the region: Chile and Peru.

Meanwhile, a Reuters poll showed foreign exchange experts expect a small depreciation in the Mexican peso in the medium term as the country navigates between a relatively firm economy on one side and some political doubts on the other. On the day, the peso inched up 0.2%.