April 27, 2017 / 4:00 PM / a year ago

EMERGING MARKETS-Mexico peso rebounds as Trump agrees to keep NAFTA for now

    By Bruno Federowski
    SAO PAULO, April 27 (Reuters) - The Mexican peso rebounded
on Thursday after U.S. President Donald Trump agreed to keep the
North American Free Trade Agreement alive for now and
renegotiate its terms.
    The peso had slumped on Wednesday after a senior Trump
administration official said a draft executive order was under
consideration that could withdraw the United States from NAFTA.

    But Trump said on Thursday that he received calls from the
leaders of NAFTA partners Mexico and Canada asking him
renegotiate the agreement instead of terminating it. Trump
expressed optimism that the three countries could successfully
renegotiate an accord he deems unfair to American
    The peso strengthened 0.5 percent after slumping
nearly 2 percent the day before. It had touched a record low in
January on concerns that Trump would pull out of NAFTA but
rallied back as officials took a more constructive tone on
    Other Latin American currencies seesawed, with the Brazilian
real slightly lower ahead of a national strike and
demonstrations called by labor unions and leftist parties to
protest conservative President Michel Temer's reform program.
    The lower house of Congress approved on Wednesday the main
text of a bill to relax Brazil's labor laws, a main plank of
Temer's efforts to increase investment and pull the economy out
of its worst recession.
    Brazil's benchmark Bovespa stock index fell 0.5
percent, weighed down by shares of Vale SA after the
world's largest iron ore producer missed first-quarter profit
    Latin American stock indexes and currencies at 1545 GMT:
 Stock indexes                                daily %    YTD %
                                               change   change
 MSCI Emerging Markets                978.46    -0.41    13.95
 MSCI LatAm                          2589.52    -0.69     11.4
 Brazil Bovespa                     64521.25    -0.53     7.13
 Mexico IPC                         49429.02    -0.27     8.30
 Chile IPSA                          4809.68    -0.87    15.86
 Chile IGPA                         24155.41    -0.83    16.50
 Argentina MerVal                   20662.81    -1.73    22.14
 Colombia IGBC                      10146.24    -0.66     0.18
 Venezuela IBC                      56324.03    -8.11    77.65
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.1840    -0.39     2.05
 Mexico peso                         19.0895     0.49     8.67
 Chile peso                            664.3     0.11     0.96
 Colombia peso                       2944.57    -0.53     1.93
 Peru sol                              3.248     0.03     5.11
 Argentina peso (interbank)          15.4500     0.26     2.75
 Argentina peso (parallel)             15.91     0.94     5.72

 (Reporting by Bruno Federowski; editing by Grant McCool)
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