The peso jumped about 0.4pc to 19.07 per dollar after media reports said Trump praised Mexico's efforts to curb Central American migrants crossing into the United States and added that tariffs on the Latin American country's imports were off the table.

Mexican President Andres Manuel Lopez Obrador on Tuesday thanked Trump for holding off on tariffs.

CI Banco analysts pinned the peso's appreciation on Trump's comments and expect the currency to trade between 19.02 and 19.15 to the dollar during the session.

The Brazilian real fell about 0.6pc following a global surge in risk assets on Monday after the United States and China agreed to get back to negotiating their long-drawn trade dispute, which has roiled for financial markets.

The tone, however, changed on Tuesday as Trump said any deal would need to be somewhat tilted in favor of the United States, arguing that China has long had a trade advantage.

In Brazil, investors are awaiting lawmaker Samuel Moreira's presentation of proposed changes to the government's pension reform bill in a congressional committee later in the day.

"We're optimistic on approval by the committee this week, though less certain about a plenary vote this month," Citi analysts wrote in a note.

The Colombian, the Chilean and the Argentine pesos all dipped slightly.

Brazil's main Bovespa stock index fell half a percent, dragged down by banking shares. The MSCI index of Latin American stocks was down more than 1 percent.