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The Mexican peso is plunging after Trump threatens to cancel his meeting with Mexico

Jan 26, 2017, 19:43 IST

Mexico's President Enrique Pena Nieto gestures as he delivers a message about foreign affairs at Los Pinos presidential residence in Mexico City, Mexico, January 23, 2017. Picture taken January 23, 2017.Edgard Garrido/Reuters

The Mexican peso just tumbled after President Donald Trump tweeted about NAFTA.

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The Mexican peso dipped into negative territory and is down by 0.3% at 21.0772 per dollar around 9:04 a.m. ET.

The currency was up by 0.8% at 20.9358 per dollar around 8:50 a.m. ET.

Trump tweeted on Thursday: "The U.S. has a 60 billion dollar trade deficit with Mexico. It has been a one-sided deal from the beginning of NAFTA with massive numbers of jobs and companies lost. If Mexico is unwilling to pay for the badly needed wall, then it would be better to cancel the upcoming meeting."

On Wednesday, an official, who was not authorized to discuss the matter publicly and spoke on condition of anonymity, told the Associated Press the Mexican administration "is considering" scrapping the visit.

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And Mexican opposition figures urged president President Enrique Pena Nieto to cancel the meeting to protest his demand of payment for the border wall.

Peña Nieto did not address reports that he was considering canceling the visit, but said in a recorded addresss that was nationally televised, "I regret and reject the decision of the US to build the wall."

Meanwhile, Trump told ABC News' David Muir in an interview published Wednesday that he wanted construction to begin as soon as possible. When Muir asked whether that meant construction would start within months, Trump said, "I would say in months, yeah."

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