Peso Plummets Amid U.S. Election Tensions

The Mexican peso weakened against the U.S. dollar amid the U.S. presidential election's early results, continuing a trend of recent volatility. Concerns over potential tariffs from a Republican victory and political tensions in Mexico are adding to economic uncertainties affecting the currency's performance.

The Mexican peso experienced a sharp decline against the U.S. dollar on Tuesday evening as early results from the U.S. presidential election showed a tightening race. The fall extended a period of volatility that has impacted the currency recently.

Dipping over 1% in after-hours trading to 20.3060 per dollar, the peso hit levels not seen since last September before attempting a recovery earlier in the day. The market is on edge as traders brace for further swings, with the possibility of a Republican victory increasing concerns over new tariffs on Mexican exports.

Such a win could see the peso drop further to around 20.50 per dollar or strengthen to 19 pesos if the Democratic candidate prevails. Continued volatility is expected if election results face disputes, compounded by domestic political unease following a controversial judicial overhaul in Mexico, which has unsettled investors.

(With inputs from agencies.)