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EMERGING MARKETS-Mexico's peso weakens on promise to renegotiate NAFTA
January 18, 2017 / 11:04 PM / 7 months ago

EMERGING MARKETS-Mexico's peso weakens on promise to renegotiate NAFTA

MEXICO CITY, Jan 18 (Reuters) - Mexico's peso dropped nearly
2 percent on Wednesday after U.S. President-elect Donald Trump's
choice for commerce secretary said renegotiating a trade deal
with Mexico and Canada would likely be the incoming
administration's first priority. 
    In his Senate confirmation hearing, nominee Wilbur Ross said
the North American Free Trade (NAFTA) agreement had never been
transparently reviewed and suggested trade accords should be
systematically re-opened. 
    "I am not anti-trade. I am pro-trade," Ross said. "But I am
pro-sensible trade, not trade that is to the disadvantage of the
American worker and to the American manufacturing community."
 
    The currency's losses deepened after Federal Reserve Chair
Janet Yellen indicated that she and other policymakers expect
the central bank to lift interest rates "a few times a year"
through 2019, which would divert capital from emerging markets.
 
    The peso  weakened 1.94 percent on Wednesday
to close at 21.93 pesos per greenback, Latin America's worst
performing currency. 
    Other Latin American currencies were mostly weaker as a
strong dollar weighed on emerging markets.   
    
    Key Latin American stock indexes and currencies at 2200 GMT:
 Stock indexes           Latest        Daily  YTD pct
                                         pct   change
                                      change  
 MSCI Emerging Markets       894.37    -0.06     3.78
                                              
 MSCI LatAm                2,423.93    -0.65     4.24
                                              
 Brazil Bovespa           64,149.58    -0.32     6.51
                                              
 Mexico IPC               46,360.63     0.78     1.57
                                              
 Chile IPSA                4,267.43     0.85     2.80
                                              
 Chile IGPA               21,264.05     0.83     2.56
                                              
 Argentina MerVal         18,870.09    -0.02    11.54
                                              
 Colombia IGBC            10,161.46    -0.11     0.33
                                              
 Venezuela IBC            30,166.78    -4.94    -4.85
                                              
                                                     
 Currencies                  Latest    Daily  YTD pct
                                         pct   change
                                      change  
 Brazil real                 3.2183    -0.20     0.96
                                              
 Mexico peso                21.9345    -1.94    -5.43
                                              
 Chile peso                  658.88    -0.47     1.79
                                              
 Colombia peso             2,934.15    -0.56     2.30
                                              
 Peru sol                     3.338     0.18     2.28
                                              
 
 (Reporting by Bruno Federowski; Editing by Alan Crosby)

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