Canadian dollar jumps after NAFTA trade deal reports

Canadian dollar jumps after NAFTA trade deal reports

TOKYO: The Canadian dollar jumped Monday (Oct 1) to a five-month high in Asian trade after reports Ottawa had reached a deal with US negotiators on reforming the North American Free Trade Agreement (NAFTA).

At around 11am in Tokyo (0200 GMT), the loonie was up 0.7 per cent from its Friday close at 1.2814 to one US dollar, following reports from Canadian media on a trade deal.

The rise pushed the Canadian currency to its strongest level since May.

Canada's CTV cited a high-level American source as saying the two sides had reached an agreement and that a joint statement was expected.

Another Canadian channel, CBC, said a "senior source" confirmed that a deal had been reached on significant sections of a new NAFTA.

Word of an agreement followed an emergency cabinet meeting called by Canadian Prime Minister Justin Trudeau ahead of a deadline for getting a revised agreement to the United States Congress.

US President Donald Trump triggered a review of the 1994 trade pact and talks between the US, Canada and Mexico began last August, after Trump called it "one of the worst trade deals in history."

Source: AFP/hs