Battered Mexican peso leads Latam FX higher, rouble hits record low

The peso was on track to recover a chunk of its 3.5% loss made over the last four sessions. Data showed annual inflation in Mexico accelerated faster than expected in February, strengthening the case for a rise in interest rates even as its economy struggles.

"The Mexican peso has historically been one of the most globally influenced emerging market currencies. Today's move was more a reflection of this improvement in global risk sentiment and the relief rally to some extent in risk assets," said Rachel Ziemba, founder of Ziemba Insights.

Other Latam currencies also firmed as the dollar succumbed to a rallying euro. Brazil's real surged to one-month high and was last trading up 0.8%, looking past data that showed a steeper than expected fall in industrial output in January.

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