Latin American currencies strengthen after weak U.S. GDP data

Latin American currencies strengthened on Friday after weaker-than-expected U.S. growth figures dampened expectations of a fast rate-hiking cycle in the coming months.

U.S. gross domestic product (GDP) increased at a 1.9 percent annual rate in the fourth quarter, closing the year 1.6 percent higher.

That was the weakest pace since 2011, a reflection of cheap oil and a strong dollar.

Some investors bet that could drive the central bank to avoid increasing interest rate too quickly, supporting the allure of high-yielding emerging market assets.

Still, question marks hover over U.S. monetary policy as traders ponder the economic implications of President Donald Trump's pledges of heavy spending and protectionism.

The Brazilian real and the Mexican peso both strengthened around 1 percent. The Colombian peso rose less than its peers, hurt by falling prices of oil.