Mexican peso, exchange rate of which is maximally sensitive to a possible victory of Donald trump on elections in the United States fell by more than 11% against the dollar (the largest drop in at least 19 years of age), after trump took the lead in the presidential race.
As of 8:30 GMT the dollar on the international currency market was worth 20,70 peso by 13% more than at the close of trading the day before (18,32 peso). As expensive as it is now, the dollar against the peso wasn’t worth never.
Today’s collapse of the peso, the largest since the financial crisis in Mexico in 1994, writes the Financial Times (the so-called tekiloy crisis, when the devaluation of the peso led to a currency and banking crisis in the country. — ).
Donald trump had earlier promised to build a wall on the U.S. border with Mexico in the event of his victory in the elections of the President of the United States. During the election campaign he repeatedly stated that to pay for its construction should be Mexico. Trump also promised to deport all undocumented immigrants from the U.S. and criticized the current administration of Obama and his rival from Democratic party Hillary Clinton because she offered a “mass Amnesty, mass immigration and a mass of iniquity.”
In early September, trump met with the President of Mexico, Enrique peña Nieto. According to Reuters, they discussed including the question of the construction of the wall. After the meeting, trump said that their conversation had not discussed the question of who will pay for the wall in case of its construction. However, Nieto on his Twitter then wrote that made it clear to Trump that Mexico to pay for it.
Compared to the success of trump when counting votes, the us dollar fell against other currencies. The dollar against the Japanese yen declined 3.4%, while the index of the dollar against a basket of six major currencies (the US Dollar Index traded on ICE exchange) fell by 1.9% (as of 8:40 GMT).
