The Mexican peso sank to its weakest in more than a year on concern the U.S. may leave the Nafta agreement and try to negotiate two separate free-trade deals with Mexico and Canada.
The peso slumped after White House economic adviser Larry Kudlow said President Donald Trump is “seriously considering” seeking separate trade talks with Canada and Mexico.
While he clarified that Trump doesn’t plan to quit Nafta, analysts cited growing concern that a trade pact with the U.S. won’t be approved by Congress before 2019.
Many a Mexican is worried about what might happen to their currency if leftist presidential candidate Andrés Manuel López Obrador wins the election.
The exchange rate went to 20.75 pesos per dollar.