Peso weakens on Trump’s threat to kill NAFTA

MEXICO CITY — Mexico’s peso weakened more than 1 percent in early trading on Wednesday Aug. 23, Reuters reported. The slackening came in the wake of 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.

Source: reuters.com