Mexico's peso weakens on promise to renegotiate NAFTA

Mexico's peso dropped nearly 2 percent on Wednesday after U.S. President-elect Donald Trump's choice for commerce secretary said renegotiating a trade deal with Mexico and Canada would likely be the incoming administration's first priority.

In his Senate confirmation hearing, nominee Wilbur Ross said the North American Free Trade (NAFTA) agreement had never been transparently reviewed and suggested trade accords should be systematically re-opened.

"I am not anti-trade. I am pro-trade," Ross said. "But I am pro-sensible trade, not trade that is to the disadvantage of the American worker and to the American manufacturing community."

The currency's losses deepened after Federal Reserve Chair Janet Yellen indicated that she and other policymakers expect the central bank to lift interest rates "a few times a year" through 2019, which would divert capital from emerging markets.

The peso weakened 1.94 percent on Wednesday to close at 21.93 pesos per greenback, Latin America's worst performing currency.

Other Latin American currencies were mostly weaker as a strong dollar weighed on emerging markets.