U.S. President Donald Trump reiterated a vow to terminate the North American Free Trade Agreement if he is unable to reach an acceptable comprise with Canada and Mexico.
The president repeated his views in a series of messages on his Twitter feed early Thursday, suggesting a good deal was possible, but nonetheless warned that he was prepared to cancel the decades-old trade pact.
Both the Canadian dollar and the Mexican peso have been volatile in global foreign exchange markets in recent days amid reports that the Trump administration was prepared to exit the free-trade agreement.
Politico first reported on Wednesday that the president was preparing an executive order to withdraw from NAFTA, with other media groups subsequently receiving similar messages from White House officials. Hours later, the White House backed off the stance.
In phone calls with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau Wednesday afternoon, Trump agreed not to terminate NAFTA "at this time," according to a readout of the calls from the White House press office.
"President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries," the statement said. It described the conversations as "pleasant and productive."
The Canadian dollar was last seen 0.37% lower at 0.7369 cents against the U.S. dollar, while the peso was trading 1.1% lower at 18.98.