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.
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