US data showed consumer prices fell in November for the first time in six months. The US Federal Reserve this week, for the first time in its history, announced it would link its policy to the level of joblessness and inflation. The prospect of low interest rates in the United States for an extended period boosts the appeal of higher-yielding emerging market assets.
Latin American finance ministers said on Friday they are worried stimulus measures in the developed world will trigger more capital flows that could further strengthen the region's currencies and hurt local manufacturers. In Brazil, the most recent economic data also suggested the economy was recovering, but not enough to cause investors to change their bets that the country's base Selic rate will remain stable in 2013. Brazil's real slipped 0.07 percent to 2.0842 per dollar. The currency has been trading around 2.07 and 2.08 this week after intervention by the central bank dragged the real back from a 3-1/2 year low.