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The Mexican peso weakened on Tuesday after news of the largest gain in U.S. retail sales in seven months, leading traders to rethink skepticism about a potential U.S. rate hike this year.

The retail sales report suggested the U.S. economy had momentum early in the third quarter and an upward revision to the data for May and June relieved concerns about a slowdown in consumer spending at the start of the year.

The report likely keeps the Federal Reserve on track to hike again in December, potentially draining funds away from emerging markets, BGC Liquidez currency trader Francisco Carvalho said. The Mexican peso weakened about 0.3 percent.

Losses were limited, however, by easing tensions between the United States and North Korea, which drove some demand for risky assets and triggered a second day of gains in stock markets in developed economies.

Pyongyang state media said that North Korean leader Kim Jong Un has delayed a decision on firing missiles toward Guam while he waits to see what the United States does next. Fears over military conflict had driven sharp losses in emerging markets last week.

Latin American stock markets were mixed on Tuesday, with Brazil’s benchmark Bovespa stock index rising in the wake of a strong batch of corporate updates.

Mall operator BR Malls Participações SA, food processor Marfrig Global Foods SA and meatpacker JBS SA all rose after reporting second-quarter results.

Argentine markets jumped after results from the country’s mid-term legislative primary election were expected to favor business-friendly President Mauricio Macri, and the peso extended gains for a second day.