Brazil's real rallied 1% as data showing inflation surged more than expected strengthened the case for a 100-basis-point interest rate hike later this month
Recent US data points to some moderation in growth rebound momentum and this reinforces our bias for Fed to be patient in its pace of policy normalisation
Iron ore exporter Brazil's currency hit 3-1/2 month lows as the steel-making ingredient marked its fifth consecutive weekly decline, down 8% since last Friday
Mexico's peso rose 0.1% with the benchmark interest rate expected to be hiked by 25 basis points to 4.50% as inflation remains well above policymakers' target level
Brazil's real rose as much as 1.2% before trading flat, while Mexico's peso rose almost 1%. Chile's peso firmed 1.1%, while Peru's sol snapped a three-day losing streak.
Manufacturing activity in Brazil hit four-month highs in June, PMIs showed, while Chile's economic activity jumped a better-than-expected 18.1% in May.
The real and Chile's peso dropped up to 1% each, with the peso giving up gains of as much as 0.7%. Mexico's peso fell 0.4%.