Mexican peso rises while the currency market declares debate win for Hilary Clinton

Following the rise of the Mexican peso during last week’s Presidential Debate, the foreign exchange market has claimed a debate victory is likely for Hilary Clinton.

 

During the 90-minute debate between the presidential candidates, which was held on 26th September, the Mexican peso surged against the U.S. dollar, leading to market analysts (and the foreign exchange market) predicting a debate win for Hilary Clinton.

 

It was reported that the Mexican peso reached 19.5360 at 10:48am (Wednesday HK/SIN), which was down from as high as 19.92 pesos before the debate began. According to data from Reuters, this marks a new low since at least 1989, as well as being the peso’s best performance in over two months.

 

Ray Attrill, the co-head of foreign-exchange strategy at National Australia Bank said of the sudden rise: “The peso has come up because the market has judged the odds of Trump winning have gone down. The peso has been the weapon of choice for betting on Trump winning.”

 

It is thought this could be a result of Donald Trump’s pledge to reduce immigration from the country.

 

Attrill and other analysts also noticed that the Japanese yen had fallen by 0.5%. On Tuesday at 7:03am (UK time), it had dropped to 100.86 per dollar.

 

Ha Jun-Woo, a currency trader at Daegu Bank in Seoul, said of the drop: “The market was risk-off prior to the debate, but it has turned risk-on now. There is the sense that Hillary Clinton is performing better in the debate- she certainly is more eloquent.”

 

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