Most Latin American currencies firmed on Friday as the dollar was pressured by much weaker-than-expected US jobs data, while Mexico's peso was little changed ahead of trade and migration talks between Mexico and United States set to resume for a third day. The greenback slid after data showed that US job growth slowed sharply in May and wages rose less than expected, making a stronger case for an interest rate cut by the central bank.
Brazil's real climbed 0.3%, while the Chilean peso was steady ahead of a central bank rate meeting. The bank is expected to keep the benchmark borrowing rate unchanged at 3%. Colombia's peso firmed 0.1%, on track to end a seven-week losing run and gain around 3% this week - its best since February last year.
Mexico's peso was marginally lower, as investors awaited signs of concrete progress from the US-Mexico talks on Friday. Mexico has ramped up efforts to curb the flow of migrants into the United States via its border, but it is unclear if the efforts will be enough to persuade US President Trump to do away with or postpone a 5 percent tariff set to take effect on Monday.
"Based on comments from the Trump administration, it's difficult to be optimistic that tariffs will be delayed," said Pilot Matys, emerging market FX strategist at Rabobank. The peso has fallen 3% since Trump's tariff threat late last week and a Reuters poll showed that tariffs could take the peso down to its lowest point this year.