Investing.com - The U.S. dollar tumbled over 1% to a one-month low against the other major currencies on Wednesday, as Donald Trump appeared to be winning the U.S. presidential election.
EUR/USD rallied 1.58% to 1.1200, the highest since September 8.
Markets were pricing in a Trump victory after the Republican candidate took the lead in the bellweather states of North Carolina, Ohio and Florida.
His opponent and Democratic nominee Hillary Clinton was the projected winner in Nevada and Virginia.
In the states of Pennsylvania, New Hampshire, Michigan, Maine and Arizona, the votes were still too close to call.
The Mexican peso plummeted to record lows following the news, with MXN/USD down 8.61% at 0.0048.
Mexico’s central bank was expected by analysts to raise its benchmark interest rate by between 75 and 150 basis points in an extraordinary meeting on Wednesday if Trump wins.
Elsewhere, USD/JPY plummeted 2.66% to 102.35.
Japan reiterated its readiness to intervene in currency markets on Wednesday morning. The country’s Finance Minister Taro Aso said on Tuesday that Tokyo will need to respond to moves in the currency markets if the U.S. election results cause a sudden spike in the yen.
The pound was hovering close to one-month highs against the dollar, with GBP/USD up 0.70% at 1.2471.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 1.33% at 96.58, the lowest since October 5.