CURRENCIES: Mexican Peso, Canadian Loonie Gain After Trump Administration Backs Down On Nafta

Euro little changed as investors await ECB meeting

The Mexican peso and Canadian dollar advanced against the U.S. dollar on Thursday, after U.S. President Donald Trump's administration backed away from threats to abandon the North American Free Trade Agreement.

Late Wednesday, Trump spoke to his Mexican and Canadian counterparts by telephone, pledging to keep the U.S. in Nafta (, according to a White House statement. That statement came hours after reports of a possible withdrawal ( from the treaty -- news that had weighed on the peso and loonie.

One dollar bought 19.05 pesos, down from 19.18 pesos late Wednesday in New York, while the buck traded at C$1.3592, down from C$1.3621 late Wednesday.

In other currencies trading, the euro changed hands at $1.0902 ahead of a policy update later Thursday from the European Central Bank, dipping from $1.0906 late Wednesday. While the ECB has vowed to keep monetary policy extremely loose until at least the end of the year, investors are already speculating when the first hints of future tightening will come (

One buck bought Yen111.38, up from Yen111.06 late Wednesday, after the Bank of Japan left unchanged its ultraeasy monetary policy ( The BOJ said inflation is lagging behind an earlier forecast, but it also offered a more upbeat tone on the economy.

The pound was changing hands at $1.2895, up from $1.2850 late Wednesday.

The ICE U.S. Dollar Index -- a measure of the greenback's strength against a basket of six rivals -- dipped to 98.89 from 98.97.

(END) Dow Jones Newswires

April 27, 2017 06:57 ET (10:57 GMT)