Mexico's peso and stocks managed to gain some ground, midway through what has been a brutal week for them,

while the dollar remained soft as data showed US consumer prices grew in line with forecasts in October.

Sacha Tihanyi, deputy head of emerging markets strategy at TD Securities, said the dollar would likely have been firmer had the US data beat expectations soundly, as it would have fueled rate hike expectations by the US Federal Reserve.

MSCI's index of currencies in Latin America was up 0.6 percent, with Mexico's peso firming 0.8 percent to regain some of the 1.8 percent it lost across the previous two sessions.

MSCI's index of equities in Latin America was up 0.7 percent, also on track to snap a six-session losing run.

The regional stock index was buoyed by strong gains in Mexico, where a 0.9 percent gain for the benchmark was led by a 2.9 percent rise in cement firm CEMEX, S.A.B. de C.V. .

Analysts broadly expect Mexico's central bank to raise its benchmark rate by 25 basis points on Thursday, following recent volatility in local markets and forecasts of a weaker peso.

Brazil's Bovespa stock index was up 0.2 percent, led higher by the consumer staples and financials sectors.

Food firm JBS SA and mall operator BR Malls Participacoes rose more than 4.2 percent each after both posted better-than-expected third-quarter results.

The real firmed about 0.4 percent. President-elect Jair Bolsonaro said "bitter" austerity measures are needed to keep Brazil from becoming "another Greece."

Many economists say cuts to Brazil's social security system are essential to controlling a huge federal deficit and regaining Brazil's investment-grade rating.

Investors snapped up Brazilian assets in the run up to and in the wake of right wing Bolsonaro's election victory last month, on hopes he could make quick advances on fiscal reforms.

In broader Latin America, Chile's peso firmed 1.1 percent, on track to break a four-day losing streak.