Financial markets wasted no time
in giving their verdict on the first U.S. presidential debate: Donald Trump didn't do well.
As Trump and Hillary Clinton sparred on live TV, one key financial barometer of the Republican nominee's prospects started moving sharply: the Mexican peso soared more than 2% against the dollar. Global stock markets also rallied.
In recent weeks, the Mexican currency has been moving in the opposite direction to Trump's poll numbers. As they have improved, the peso has dropped, hitting an all-time low against the dollar ahead of Monday night's debate.
Its sudden leap during the debate was a clear reaction to Trump's performance, according to Ihab Salib, head of international fixed income at Federated Investors. A CNN/ORC poll of debate watchers released after the event found 62% felt Clinton won compared with 27% for Trump.
Trump, however, told CNN that the debate "went better than I ever thought."
The peso's sharp moves lately are a reflection of investors' fears that the relationship between Mexico and the U.S. -- political and economic -- could be thrown into chaos by a victory for Trump, who has proposed the building of a wall along the border.
Salib says the Mexican currency is going to remain volatile as the race for the White House continues.
"There's a lot of time and at least two more debates before the election," he said. "It's more likely for the peso to continue to fluctuate with each event. I don't think it can hold on to most of any gains until after the elections."