How Emerging Markets currencies are moving
Mexico’s peso rebounded on Wednesday from a near five-month low as talks began to rehash a trade deal with the United States, while other emerging markets currencies also gained.
Doubts that President Donald Trump would push through his planned tax reforms fueled bets that U.S. interest rates will rise more slowly than expected, lifting Latin American currencies across the board.
The currencies of Brazil and Chile firmed sharply, while the Mexican peso gained nearly 0.7 percent.
Mexico’s peso shook off five straight sessions of losses on concerns that Mexico, the United States and Canada may fail to reach a deal to renegotiate the North American Free Trade Agreement.
A fourth round of negotiating talks began in Washington on Wednesday.
Trump said he would be open to bilateral trade deals with Canada and Mexico if NAFTA talks between the three countries fall apart.
The peso shed more than three percent before its gains on Wednesday. Banco Base noted in a report that the currency could soon test 19 to the dollar if NAFTA talks continue to struggle.
Key Latin American stock indexes and currencies at 2315 GMT:
Source: Reuters – Mexico peso rebounds from low as NAFTA talks start
Related Posts
U.S. Stocks, Dollar Retreat as Trump Targets Trade: Markets Wrap
Trump accuses China, EU of currency manipulation
The dollar’s strength pressured many emerging market currencies
Emerging Currencies Review: Currencies and stocks gain, led by Chinese markets
Investors Update: Escalating trade row haunts emerging markets stocks, Forex
