April 27, 2017 / 10:15 PM / a year ago

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

 (New throughout, updates prices and market activity to close)
    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 previous day, the peso slumped after a senior Trump
administration official said a draft executive order was under
consideration that could withdraw the United States from
    But Trump said on Thursday he received calls from the
leaders of NAFTA partners Mexico and Canada asking him to
renegotiate the deal rather than terminate it. Trump expressed
optimism that the three countries could successfully renegotiate
an accord he deems unfair to American interests.
    The peso strengthened 0.8 percent a day after it
fell nearly 2 percent. It hit a record low in January on
concerns that Trump would pull out of NAFTA but rallied back as
officials took a softer tone on trade.
    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.
    On Wednesday, the lower house of Congress approved 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 0.3
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 2200 GMT:
 Stock indexes                     Latest       Daily  YTD pct
                                                  pct   change
 MSCI Emerging Markets                979.66    -0.29    13.61
 MSCI LatAm                         2,595.58    -0.46    10.89
 Brazil Bovespa                    64,676.55    -0.29     7.39
 Mexico IPC                        49,440.96    -0.25     8.32
 Chile IPSA                         4,783.08    -1.42    15.22
 Chile IGPA                        24,038.81    -1.31    15.94
 Argentina MerVal                  20,889.45    -0.65    23.48
 Colombia IGBC                     10,109.05    -1.02    -0.19
 Venezuela IBC                     56,429.94    -7.94    77.98
 Currencies                                   daily %    YTD %
                                               change   change
 Brazil real                          3.1820    -0.29     2.11
 Mexico peso                         19.0025     0.82     9.16
 Chile peso                            663.7      0.2     1.05
 Colombia peso                      2,940.75    -0.37     2.07
 Peru sol                              3.245     0.15     5.21
 Argentina peso (interbank)          15.4100     0.31     3.02
 Argentina peso (parallel)              15.9     0.69     5.79
 (Reporting by Bruno Federowski; Editing by David Gregorio)
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