Argentina reiterates sovereignty claim over Falkland Islands
Elsewhere in the region, Argentine President Javier Milei said he would sanction oil companies drilling in the Falkland Islands, stepping up the country's claims to sovereignty over the British overseas territory.
Argentinian equities .MERV declined 0.6% and the currency ARS=RASL firmed.
Regional indexes mostly weaker as Brazil and Chile stand out
The U.S. dollar index =USD rose following the reading and pressured local currencies.
MSCI's Latin American currency gauge .MILA00000CUS fell 0.2% but was on track to register a weekly rise, helped by favorable carry trade opportunities among the high yielding currencies in the region.
The broader equities index .MILA00000PUS declined 0.3% and headed to snap a four session winning run, but was still headed for a weekly gain.
Soaring crude prices had lifted oil exporters of the region this week, while polls showing a tightening race ahead of Brazil's presidential election also buoyed sentiment.
A Datafolha poll showed on Thursday that the lead of Brazilian President Luiz Inacio Lula da Silva over Senator Flavio Bolsonaro ahead of the October election has narrowed.
Assets typically react positively to indications for the support of a market-friendly candidate as investors remain wary of pressure on public finances under the current administration.
Brazil's stocks .BVSP inched higher, and on track to clock in its best week since April. The real BRL= dipped 0.2%.
However, the Mexican peso MXN= firmed while the Colombia peso COP= added 0.2%.
Investor focus will also turn to central bank decisions in Chile and Peru next week.
Chilean central bank is expected to keep its benchmark interest rate steady at 4.50% when it meets on Tuesday. Peru's central bank had held its benchmark interest rate at 4.25% for an 11th consecutive meeting in August.
Chilean stocks .MICL00000PUS and the peso CLP= weakened 0.5% each.
Latin American stocks and currencies slip after strong US jobs data
Most Latin American stocks were lower on Friday as a stronger-than-expected U.S. jobs report added to imminent rate hike bets, denting risk sentiment, while regional currencies were mixed against the greenback.
U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, pointing to a still stable labor market and keeping an interest rate hike from the Federal Reserve this month on the table.
Traders quickly ramped up odds of a September rate hike now at 60% up from about 50% earlier in the session, according to CME's FedWatch tool.
"This outcome has nudged expectations of a September rate hike higher, but the final decision hangs on next Friday's inflation print," said James Knightley, chief international economist at ING.
The move erases the brief respite offered by dovish comments from Federal Reserve Governor Christopher Waller on Thursday.
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