MEXICO CITY, Nov 5 Reuters The Mexican peso sank against the U.S. dollar as results in the U.S. presidential election rolled in, extending a streak of volatility which has hit the currency in recent days.
The peso dropped as low as 20.7710 per dollar for the first time since August 2022, about 3.2 weaker than its closing price from the previous session.
The peso39;s weakness came as traders priced in the possibility that Republican Donald Trump could defeat Democratic candidate Kamala Harris. Trump has vowed to impose new tariffs on Mexican exports.
Traders are bracing for more fluctuations as the vote counts from the hotly contested U.S. presidential election come in.
After Trump39;s 2016 presidential victory, the peso plummeted around 8.5 on the dollar to a thenhistoric low.
Reuters39; vote count shows Trump so far winning 230 Electoral College votes against 169 for Harris. A candidate needs at least 270 electoral votes to win.
Since it39;s such a close election and results will be slow to come in, we39;ll likely see the reality of the impact on the peso during trading in London, tomorrow in the U.S. or even through the rest of the week, said Jorge Gonzalez, who heads the consultancy Asesores en Divisas y Riesgos.
Earlier this year, the value of the local Mexican currency was battered after the ruling Morena party of leftist President Claudia Sheinbaum secured large majorities in Congress following June39;s general election in Latin America39;s secondbiggest…