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
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%.
Brazil's real meanwhile slipped 0.7%. The country's monetary policy committee Copom is due to release its decision after the Fed on Wednesday. A 75 basis-point hike is expected as inflation is well above the central bank's target.
The dollar climbed ahead of the data, pressuring riskier emerging markets (EM) currencies. MSCI's index of EM currencies slipped slightly from all-time highs.
Brazil's real bucked the trend, erasing early losses to rise 0.4%. The currency extended gains to a third straight session with iron ore prices rising. Shares in iron ore miner Vale rose 0.3% and were among top gainers on Sao Paulo's main stocks index.
