The dollar pared gains again the Japanese yen and extended losses against the euro after US consumer prices data showed that inflation remains low despite a tight labor market, bolstering the Federal Reserve's case for keeping interest rates on hold.

Robust gains from Brazil's real and Colombia's peso on the back of higher oil prices boosted the MSCI's index for Latin American currencies.

In Mexico, the peso pared gains and the stock index declined after news emerged that the government may delay the construction of the Dos Bocas refinery and instead funnel the $2.5 billion earmarked in 2019 for the project into state oil firm Pemex.

Pemex, which holds the largest debt of any Latin American oil company was downgraded by rating agencies S&P and Fitch over the last two months, leaving questions hanging over Mexico's sovereign credit rating.

Chile's peso rose about half a percent on the back of higher copper prices, while stocks on the IPSA index were marginally lower.

Sao Paulo-traded stocks were marginally lower, with businesses still influenced by expectations about pension reform.

Colombia's IGBC index hit a five-month high, while the peso rose 0.7 percent on the back of higher oil prices.

Investors also watched developments related to Boeing in the region with Gol in Brazil temporarily suspending 737 MAX flights and Argentina's state airline Aerolineas Argentinas and Mexico's Aeromexico following suit.