October 18, 2017 / 10:30 PM / a year ago

EMERGING MARKETS-Mexico peso falls again amid uncertainty about NAFTA talks

    MEXICO CITY, Oct 18 (Reuters) - The Mexican peso
slipped on Wednesday, continuing its volatile gyrations as talks
to revise the North American Free Trade Agreement (NAFTA)
    The Mexican peso has seesawed as investors puzzle over what
the contentious talks mean for the nation's future, dipping
almost 0.5 percent on Wednesday. A day earlier, the United
States, Canada and Mexico wrapped up the latest round of NAFTA
renegotiations in Washington, D.C., trading barbs.
    "We think the (Mexican peso) could remain very volatile as
the market continues to digest the results of the fourth round
of NAFTA negotiations," Nomura analysts Mario Castro, David
Wagner and Benito Berber wrote in a note to investors.
    The losses came after the peso rose about 1.5 percent on
Wednesday on news that trade ministers from the United States,
Canada and Mexico would extend a deadline to finish talks. The
jump marked the currency's biggest one-day gain in about 4-1/2
    Before its rebound, the peso had shed close to 5 percent
this month on concerns that talks to revamp the 23-year-old
North American trade accord could founder. U.S. President Donald
Trump has repeatedly threatened to leave the pact, crying foul
over the United States' trade deficit with Mexico.
    Mexico's government is not worried about the movements in
the country's peso, which have been orderly, Finance Minister
Jose Antonio Meade said on Wednesday.
    NAFTA is a critical pillar of the Mexican economy, which
sends nearly 80 percent of its exports to the United States.
    Meanwhile, Brazil's benchmark Bovespa stock index
edged up 0.5 percent as investors remained cautious amid a
corruption scandal that has embroiled President Michael Temer
and could doom his market-friendly reforms.
    Latin American stock indexes and currencies at 21:00 GMT:  
 Stock indexes               Latest      Daily     YTD
                                           pct     pct
                                        change  change
 MSCI Emerging Markets        1,126.90    0.11   30.69
 MSCI LatAm                   2,952.59    0.73   26.14
 Brazil Bovespa              76,591.09    0.51   27.17
 Mexico IPC                  49,938.98    -0.4    9.41
 Chile IPSA                   5,517.97    0.63   32.92
 Chile IGPA                  27,649.69     0.6   33.35
 Argentina MerVal            26,213.15   -1.54   54.94
 Colombia IGBC               11,012.49   -0.16    8.73
 Venezuela IBC                  559.96   -0.32  -98.23
 (Reporting by Julia Love, Michael O'Boyle and Noe Torres;
Editing by Cynthia Osterman)
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