Thursday, 10 November 2016
Mexican peso and other emerging-market notes fall against US dollar
PETALING JAYA: The Mexican peso, along with most emerging-market currencies, came under pressure following Donald Trump’s victory in the United States presidential election yesterday, as investors’ concern that trade deals in developing countries with the largest economy in the world could come under threat mounted.
Most emerging-market currencies fell against the US dollar, with the ringgit slumping to near lowest levels in months as investors sought safe-haven assets such as gold and developed economies’ currencies, including the Japanese yen and the euro.
The Mexican peso saw the biggest slump in eight years, while the ringgit fell to RM4.224 against the greenback, a nine-month low since Feb 25.
The equity markets around the world were also shaken as investors priced in Trump’s victory.
The Bloomberg US dollar spot index spiked to 1,207 yesterday after the Mexican peso took a battering, plunging almost 14% in one day to an all-time low against the US dollar.
The index is a gauge of the greenback’s performance against a basket of major currencies such as the euro, yen and pound sterling.
The US dollar dropped against the safe havens, including the yen and the Swiss franc as much as 4% and 2.4%, respectively.
Source by: Internet