Mexican peso up ahead of Trump inauguration

Latin American currencies strengthened on Friday on a tentative rebound in risk appetite ahead of the inauguration of U.S. President-elect Donald Trump.

The Mexican peso strengthened 1 percent but still hovered near an all-time low touched earlier this month.

Traders warned of potential volatility later in the day as Trump delivers his inauguration speech.

Trump's campaign promises to break with trade accords with Mexico have hammered the currency over the past months.

Expectations that lower taxes and heavy government spending could push U.S. rates higher have also depressed appetite for high-yielding emerging market assets in general.

On Friday, rising oil prices also helped lift Latin American currencies, with the Colombian peso 0.6 percent stronger.

Crude futures advanced for a second day on bets that a weekend meeting of the world's top oil producers would demonstrate compliance to a global output cut deal.