Mexico’s peso and Canada’s dollar jumped after President Donald Trump said he wasn’t going to quit Nafta, 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 11:22 p.m. in New York, recouping more than half of its 1.7 percent drop on Wednesday. The Canadian currency advanced 0.6 percent, halting a four-day decline. Trump has often blamed the North American Free Trade Agreement for hollowing out America’s manufacturing sector by relocating jobs to lower-cost Mexico.
“I think Canada is going to get a bounce and I think Mexico should continue to strengthen because this was a pretty major headwind for both those currencies,” said Stephen Innes, a senior currency trader at OANDA in Singapore. “This opens the door for a bit of a buy-in on commodity currencies.”