Peso Tumbles Amid U.S. Election Turbulence

The Mexican peso experienced significant volatility against the U.S. dollar as U.S. presidential election results came in. Traders are concerned about potential Mexican export tariffs under Trump, leading to peso weakness. A contested election could exacerbate this instability, while congressional changes in Mexico add further uncertainty.

The Mexican peso experienced a sharp decline against the U.S. dollar as early results from the U.S. presidential election emerged, continuing recent currency volatility. Trading saw the peso at 20.5260 per dollar, marking a 2% drop from earlier sessions, the weakest since September 2022.

Amid regular hours on Tuesday, the peso maintained its level before shedding losses as election counts emerged. Traders are gearing up for more fluctuations as the fiercely contested U.S. election progresses.

The potential for a Trump win, who promises new tariffs, could push the peso to around 20.50 per dollar. Conversely, a Harris win could strengthen it to 19 per dollar. A contentious election outcome, however, might increase volatility, as noted by analyst Gerardo Copca.

(With inputs from agencies.)