2 Min Read
By Bruno Federowski
SAO PAULO, April 19 (Reuters) - The Mexican peso weakened to its lowest level in nearly two weeks on Wednesday as oil prices slipped and after remarks by U.S. President Donald Trump rekindled expectations of strong protectionist measures against Mexico.
The peso weakened 1.3 percent after Trump reiterated his threat to eliminate the North American Free Trade Agreement with Canada and Mexico if it cannot be changed.
Fears that Trump's anti-trade rhetoric could pummel the Mexican economy had battered the peso last year, but the currency recovered in recent months as talks between both countries seemed to take on a moderate tone.
The peso was the worst performer among Latin American currencies, which slipped due to mounting political concerns ranging from tensions in North Korea and Syria to elections in France and Britain.
The Brazilian real also suffered after lawmakers delayed to May a vote on President Michel Temer's landmark pension overhaul, which many see as necessary to pull the country out of its deepest recession on record.
Brazil's benchmark Bovespa stock index fell 1.17 percent, as Petrobras shares dropped 3.55 percent on lower oil prices. (Reporting by Bruno Federowski; Editing by Lisa Von Ahn)