Mexican Peso Plunges Amid U.S. Election Uncertainty

The Mexican peso weakened against the U.S. dollar due to uncertainty surrounding the U.S. presidential election. Traders fear further volatility as Donald Trump leads against Kamala Harris. The peso could fall if Trump wins and rise with a Harris victory. Past election results have heavily impacted the currency.

The Mexican peso has experienced a significant decline against the U.S. dollar as the early results of the U.S. presidential election unfold. This recent downturn extends a period of volatility that has affected the currency and others in recent days.

Currency traders are on edge, anticipating further fluctuations in response to the fiercely contested election. The peso's weakening reflects market concerns about the possibility of Republican candidate Donald Trump defeating Democrat Kamala Harris, as Trump has promised to impose new tariffs on Mexican goods.

Gerardo Copca of MetAnalisis consultancy suggests that a Trump victory could push the peso to depreciate further, while a Harris victory might help the currency regain strength. However, protracted election results could exacerbate the volatility experienced thus far.

(With inputs from agencies.)