Exchange rate fluctuations due to U.S. elections.

The dollar dropped more than one peso in the early morning hours and is trading at less than 21 units this Wednesday.

MEXICO CITY (El Universal) – While the United States is locked in a close election for president, the Mexican peso has been on the rise. 

The exchange rate stands at 20.99 units per dollar, after shooting up last night to almost 22 pesos, according to the quotes in international negotiations reported by Bloomberg agency.

The dollar sells for 21.56 pesos at CitiBanamex counters in retail operations, 17 cents less than yesterday and the lowest price since Tuesday of last week.

The currency is offered at 21.46 units in BBVA, at 21.49 in HSBC, and 21.55 pesos in Banorte.

The peso’s recent appreciation is because market participants anticipate that a winner will soon be defined in the presidential elections. However, episodes of volatility for the exchange rate cannot be ruled out if a winner is not declared in the next few hours or if more closed results are observed, announced Gabriela Siller, chief economist of Banco Base, this morning.

We probably see the worst scenario for the markets: a more closed election than anticipated, with both candidates singing victory, said Luis Gonzalí, debt portfolio manager at Franklin Templeton Investment Services Mexico.

Democratic candidate Joe Biden is ahead with electoral votes so far. Attention is focused on the results that can be announced in the next few hours in Georgia (16 electoral votes), Michigan (16), Wisconsin (10), North Carolina (15), and Pennsylvania (20), points out Gabriela Siller.