Dollar, Mexican peso, stocks topple as Trump wins

The U.S. dollar sank and stocks have plummeted in market mayhem as investors faced up to a shock win for Donald Trump in the U.S. presidential election that could upend the global political order. Sonia Legg reports.

The shock of the Brexit vote had made markets cautious but clearly not cautious enough.

As the prospect of a President Trump emerged there was a bloodbath, starting in Asia.

The U.S. dollar sank and stocks plummeted

Sovereign bonds, gold and the Japanese yen all surged,


“Japan will struggle with foreign exchange and yen-selling intervention; and also considering his views on Mexico and other neighbouring countries, he has shown a dislike toward immigrants. This would move the markets toward more risk-averting direction.”

The Mexican peso, plunged more than 13 percent against the dollar in chaotic trading.

Trump’s proposed polices are considered deeply negative for the country.

US stocks futures dived five per cent at one point – worse than the carnage caused by Britain’s vote to the leave the European Union.

Investors fear a Trump victory could cause global economic and trade turmoil, not to mention years of political uncertainty.

The expected US rate rise in December now looks in doubt.

And other central banks may have to easy policy further.

South Korean authorities were thought to have intervened to steady their currency.

And Japan was looking ready to do the same.

Nowhere was spared – the risk if a global trade war hammered all currencies Asia, with Australia leading the rout.

One analyst said markets were reacting “like the four horsemen of the apocalypse just rode out of Trump Tower”

Associated Links

  • Business
  • Donald Trump presidential campaign
  • American people of German descent
  • Donald Trump
  • The Apprentice
  • WWE Hall of Fame
  • Upend