Mexican Peso Hits Six-Week High Following Final Clinton-Trump Debate

PesoIncreased optimism over a Hillary Clinton victory against Donald Trump helped Mexico’s peso to rally to its strongest level in six weeks, following the final debate between the candidates ahead of next month’s presidential election in the U.S.

Following the debate, the Mexican currency jumped as high as 18.4558 against the dollar, as reported by Bloomberg. That was the highest level seen since Sept. 8.

The performance of the peso has been considered a reflection of what investors think on whether Trump will emerge winner in next month’s election. The currency falls when the Republican candidate is having an upper hand in the campaign and rises when he is not doing so well.

Trump has not kept his desire to take certain actions that would very likely hurt America’s southern neighbor should he become the next president. He has emphasized his intention to have the terms of the North American Free Trade Agreement renegotiated.

A stronger peso is indicative of expectations in the market that the billionaire is now less likely to win. The currency has done better than all of its major peers since the commencement of the presidential debate on Sept. 26, soaring by more than 7 percent.

Clinton’s prospect of winning the U.S. presidential election improved following the final debate, as she appeared to have made better positive impression. Around 52 percent of debate watchers sampled in a CNN/ORL poll said the Democratic candidate won, while 39 percent supported her opponent.

A national survey by Bloomberg Politics on Wednesday showed that Clinton has extended her lead over Trump.

“Never in the history of the U.S. has a candidate faced such a deficit in the polls as Trump currently holds, with at least two well-known sites (that model the probability of the outcome) putting an 85-90 percent chance of a Clinton win,” IG Group’s chief market strategist Chris Weston said in a note.

Weston however stated that “it can often pay to expect the unexpected” based on recent precedents.

Seemingly aware that he was losing ground, Trump frantically tried to turn the table to no avail during the final debate before the U.S. presidential election. He dismissed Clinton’s claim that he was a puppet of Vladimir Putin, saying his Democratic opponent had been outsmarted by the Russian president on several occasions.

Trump also accused Clinton’s campaign of being behind accusations by some women who said he made uninvited sexual advances towards them. The Republican candidate, who described his opponent as “a nasty woman,” said the claims were completely untrue.

Some analysts believe the markets heavily reflect preference for a Clinton win.

The Mexican peso slumped heavily last month after recording the most losses among major currencies as Trump appeared to be having the edge over Clinton. Investors are concerned about the negative effects the businessman’s plan to curb trade with Mexico and deport millions of Mexicans without proper documentation could have on the economy of the U.S. neighbor.

So far, Trump has not stated whether he would accept the results of the November election if he loses. He had previously implored his supporters to monitor inner-city polling units to guard against voter fraud.

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