Mexican Peso Surges After First Presidential Debate
Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.
While at least two polls gave Hillary Clinton the win over Donald Trump in Monday night's heated presidential debate, the Mexican peso may be the night's real victor.
Emerging markets rallied Tuesday, with the Mexican peso surged more than 2% in the wake of the verbal sparring match, Reuters reported. That may be a result of the fact that the markets see Clinton as the winner in the first debate, and the Democratic candidate is seen as the safer choice in terms of maintaining the status quo. Investors view the Republican Trump, on the other hand, as a volatile option whose presidency leaves many unanswered questions, such as the direction of U.S. foreign policy and the domestic policy.
Before the debate, the peso had reached new lows amid concerns that a Trump presidency might harm exports to the United States, its biggest market. But that changed soon after the candidates began sparring on Tuesday night. "Markets started to call the debate for Hillary within the first 15 minutes or so, with the Mexican peso surging in what is probably its busiest Asian session in years," Sean Callow, a senior currency analyst at Westpac in Sydney, told Reuters.