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Reprieve for Peso, Loonie After Trump's About-Face on Nafta

  • U.S. president says nation won’t quit free trade agreement
  • Mexican currency recoups most of 1.7 percent loss on Wednesday
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BMO Global's Bell on Nafta, Trump's Tax Plan

Updated on

Mexico’s peso and Canada’s dollar jumped after President Donald Trump said he wasn’t going to quit Nafta at this time, just a day after reports his administration might pull out of the free-trade agreement.

The about-face pushed the peso up 1.1 percent as of 11:56 a.m. in Singapore, recouping most of its 1.7 percent drop on Wednesday. The Canadian loonie advanced 0.6 percent, halting a four-day decline. The Mexican currency has been on a roller-coaster ride since Trump’s election win, initially weakening on fears the U.S. would turn more protectionist before rebounding sharply as it looked like those concerns were overdone.