As the reality of Donald Trump's victory over Hillary Clinton begins to set in, global consequences are already rolling out, and they're as scary as one might have predicted. After over a year of Trump's campaigning against immigration and taking particularly harsh aim at Mexico, the Mexican peso plummeted 9.3 percent as global markets opened Wednesday morning.
Bloomberg reports that this sharp decline in the peso's value brought it to 1 peso for $20.2044 U.S. dollars, a record breaking low for Mexico. The Mexican central bank governor and finance minister told the press Tuesday morning that trading has been going smoothly and that the nation's finances are "solid," Bloomberg writes.
Bloomberg further reported that analysts with the financial services group Nomura Holdings Inc. and Capital Economics now say that in the aftermath of the Republican's victory, the peso could drop as low as $25 U.S. dollars per peso.
London-based strategist with Societe Generale SA, Phoenix Kalen, told Bloomberg, "The peso is the number one target and it’s in the eye of the storm, not just because of trade." Kalen went on to say that changes in immigration reform will also have an impact on the peso's worth: "There are also questions around deportation of millions of Hispanic immigrants from the U.S., the repatriation of tax receipts. All of those channels affect the Mexican peso."
Mexico was not the only country to see financial disruption in the wake of Trump's win.