Mexico's peso fell 0.4 percent, a day after its central bank hiked its benchmark interest rate by 25 basis points citing inflationary pressure.

The currency was however, still on track to post a fourth-straight week of gains with markets reacting positively to the new leftist government's budget earlier this week.

Brazil's real fell 0.7 percent on the day but was on track to post its first weekly gain in 7 weeks.

The Bovespa index rose 0.3 percent as gains in the materials and consumer sector offset losses made by shares of energy companies owing to lower oil prices.

Brazilian planemaker Embraer was one of the biggest gainers on the index after the company along with Boeing approved terms of their strategic joint venture for commercial aviation, while awaiting approval from the Brazilian government.

State-controlled oil firm Petroleo Brasileiro SA was among the biggest losers on the index as oil prices hit multi-month lows and as the company said it will suspend any new divestment initiatives in oil exploration or production, following a Supreme Court order.