Mexico's peso weakens after Trump says he may kill NAFTA

[August 23, 2017]  MEXICO CITY (Reuters) - Mexico's peso weakened more than 1 percent in early trading on Wednesday, reacting to U.S. President Donald Trump's comments casting doubt on the future of the North American Free Trade Agreement (NAFTA).

A buyer and seller exchange Mexican pesos in a restaurant in Mexico City, Mexico, August 3, 2017. REUTERS/Edgard Garrido

Initial talks to re-negotiate the trade pact between Mexico, the United States and Canada ended in Washington this weekend with no sign of a breakthrough, and further discussions are due in Mexico City in September.

In a speech on Tuesday night, Trump said he might terminate NAFTA, saying its future looked bleak. The peso weakened more than 1 percent before paring losses to 17.7970 pesos per dollar.

(Reporting by Miguel Angel Gutierrez)

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