POST TIME: 20 May, 2018 00:00 00 AM
Mexican peso tumbles to 14-month low

Mexican peso tumbles to 14-month low

The Mexican peso fell Friday to its lowest level in 14 months against the dollar, hit by fears over rocky negotiations for an updated trade deal between Mexico, the United States and Canada, reports AFP from Mexico city.

The peso closed down 1.3 percent, at 19.94 to the dollar, according to the central bank—its lowest level since March 2, 2017.

The strong US economy has led to a global dollar rally, punishing many emerging-market currencies in recent weeks, notably the Argentine peso and Turkish lira.

Mexico has avoided forex carnage so far, but the drawn-out renegotiation of the North American Free Trade Agreement (NAFTA) -- seen as vital to the Mexican economy—is starting to cause jitters.

An informal deadline to reach a new deal by Thursday, set by the US Congress, passed without a breakthrough.

Mexico and Canada remained upbeat, saying a deal was close. But US Trade Representative Robert Lighthizer said negotiators were “nowhere near” an agreement.