Mexico’s peso weakens after Trump says he may kill NAFTA
Mexico’s peso weakened more than 1 percent in early trading on Wednesday, reacting to U.S. President Donald Trump’s comments casting doubt on the future of the North American Free Trade Agreement (NAFTA).
Initial talks to re-negotiate the trade pact between Mexico, the United States and Canada ended in Washington this weekend with no sign of a breakthrough, and further discussions are due in Mexico City in September.
In a speech on Tuesday night, Trump said he might terminate NAFTA, saying its future looked bleak. The peso weakened more than 1 percent before paring losses to 17.7970 pesos per dollar.
Reporting by Miguel Angel Gutierrez