BENGALURU: Most Latin American currencies and stocks advanced on Friday after data in the United States reflected a downward trend in inflation pressures, while investors assessed corporate earnings from Brazil and Mexico.

The MSCI’s gauge of local equities was up 1.0% by 1457 GMT. A basket of local currencies rose 0.9% against the dollar with Brazil’s real, Mexico’s peso and Colombia’s peso adding between 0.05% and 0.8%.

Investors took some comfort from US data that showed personal consumption expenditure was broadly in line with expectations as they wait for a key Federal Reserve interest rate decision in the following week.

“Markets have been trading a bit cautiously (so far) considering the environment of higher rates, and so, with an (inflation) print that essentially confirms what we already knew ... that’s enough for markets to be more optimistic,” said Juan Manuel Herrera, senior economist at Scotiabank.

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