Canadian dollar hits four-month high as U.S., Canada reach NAFTA deal


By Daniel Leussink

TOKYO (Reuters) – The dollar slipped against the Canadian dollar on Monday as the United States and Canada reached a framework deal to update the North American Free Trade Agreement.

Sources with direct knowledge of the talks confirmed the two countries reached a deal, which involved offering more dairy access to U.S. farmers as well as Canada agreeing to a side-letter arrangement effectively capping automobile exports to the United States.

A Mexican source close to the NAFTA talks separately said: “we have a trilateral deal.”

The Canadian dollar <cad=d4>rose about 0.7 percent, reaching a four-month high of C$1.2814 as the news about the framework agreement broke, before giving up some gains. It last traded at C$1.2836.</cad=d4>

The loonie added to the previous session’s gains of more than one percent.

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