EMERGING MARKETS-Mexico peso strengthens after Trump NAFTA comments
By Miguel Angel Gutierrez SAO PAULO, July 23 (Reuters) - Mexico's peso strengthened on Monday after U.S. President Donald Trump spoke of doing something "very dramatic and very positive" regarding NAFTA and Mexico and praised the country's new president-elect.
The peso also gained on upbeat comments about the renegotiation of the North American Free Trade Agreement (NAFTA) from Mexico's Economy Minister Ildefonso Guajardo, moving up 0.77 percent against the U.S. dollar through the day to 18.888 pesos per greenback.
"We're talking to Mexico on NAFTA, and I think we're going to have something worked out. The new president, terrific person, I spoke to him at length on a call," Trump said.
"We're talking to them about doing something very dramatic, very positive for both countries." Mexico's Guajardo said earlier on Monday that there was scope to revive efforts to rework NAFTA when trade ministers from Mexico and the United States meet this week.
The outlook for NAFTA talks has been an important driver for the peso this year, since Mexico sends around 80 percent of its exports to its northern neighbor.
Equities markets across the region were mostly weaker, with Brazil's benchmark Bovespa index among the biggest losers, falling more than 0.7 percent, after opening in the black. The index performed well last week, rising some 1.24 percent on Friday alone.
Key Latin American stock indexes at 2025 GMT: Stock indexes daily YTD % % change Latest change MSCI Emerging Markets 1069.52 -0.05 -7.68 MSCI LatAm 2627.84 -0.8 -7.08 Brazil Bovespa 77996.12 -0.73 2.09 Mexico IPC 48850.93 -0.12 -1.02 Chile IPSA 5407.59 -0.41 -2.82 Chile IGPA 27238.61 -0.36 -2.65 Argentina MerVal 27688.60 0.23 -7.91 Colombia IGBC 12257.34 0.29 7.80 Venezuela IBC 97619.43 -1.91 7628.31 (Reporting by Gram Slattery, Iuri Dantas and Miguel Angel Gutierrez; additional reporting by Paula Arend Laier; editing by Jonathan Oatis and Tom Brown)
