MSCI’s index for regional currencies was up 0.2%, on pace for its third straight weekly gain. In contrast, the U.S. dollar index USD= fell 0.3%.
The greenback trimmed some losses after data showed U.S. job growth slowed marginally in April and the unemployment rate held steady at 4.2%, assuaging fears that the world’s biggest economy was close to recession after GDP data earlier this week had shown a contraction in the first quarter.
Most global risk assets rose after Beijing said on Friday it was “evaluating” an offer from Washington to hold talks over U.S. tariffs.
There were multiple signs this week that the world’s top two economies were making attempts to roll back their trade conflict following U.S. President Donald Trump’s decision to impose crippling tariffs.
“Anything that looks towards the improvement of (demand from) China … that’s going to be great for Latin America and emerging markets,” said Juan Perez, director of trading at Monex.
Brazil’s real was among the best-performing currencies on Friday, rising 0.5% against the dollar and on track for a third straight weekly advance.
The country’s central bank is widely expected to lift its benchmark interest rate to the highest level in almost 20 years on May 7, but the move is likely to be smaller than the last three consecutive 100-basis-point hikes.
Meanwhile, Chile’s peso led the gains among local currencies on Friday, strengthening 0.7% against the greenback.
Economic activity in the world’s largest copper producer rose 3.8% in March from the year-earlier period, beating market forecasts.
That data followed the central bank’s move to keep its benchmark interest rate steady at 5%.
The Mexican peso was an outlier, down 0.3% and on pace for marginal weekly losses.
Regional stocks also languished, with the broader index down 0.5%.
Although global markets have come under pressure in 2025 due to heightened uncertainty over Trump’s erratic tariff moves, Latin American assets have largely evaded sharp selling pressures due to relatively lower U.S. import tariffs for the region’s products.
Elsewhere in emerging markets, the focus will be on Romania’s presidential election re-run on Sunday, which could propel ultra-nationalist George Simion to power, an outcome likely to cause unease in the European Union and NATO and unsettle investors.
Markets in Argentina remained closed for a public holiday.
